Skip to main content

About your Search

20121129
20121207
SPONSOR
SHOW
( more )
STATION
KPIX (CBS) 27
KGO (ABC) 23
KQED (PBS) 21
KTVU (FOX) 18
KRON (MyNetworkTV) 11
WUSA (CBS) 11
( more )
LANGUAGE
Search Results 0 to 99 of about 729 (some duplicates have been removed)
PBS
Dec 4, 2012 6:30pm PST
governors met with president obama today about what they need to see in a fiscal cliff deal. we talk with delaware governor jack markell. >> susie: i'm susie gharib. a coalition of the nation's top c.e.o.s is feeling pessimistic about getting a fiscal cliff deal. the group's leader joins us, maya macguinneas. >> tom: and luxury fashion meets the mass market. who wins with target's pairing with neiman marcus? >> susie: that and more tonight on nbr! >> tom: there wasn't much obvious ground given today between president obama and congressional republicans in the effort to avoid the fiscal cliff in january. president obama repeated his pledge he's open to new ideas, but is holding firm on his call for higher taxes on top income earners, something missing from the g.o.p. plan. with just three weeks left, the two sides are still at odds with their opening offers. with time ticking away to reach a deal before tax cuts expire and spending cuts hit, president obama today said he's still optimistic a deal will be done and he's willing to compromise, but negotiations just aren't there yet. >> i
CNBC
Dec 3, 2012 6:00pm EST
might be a deal on the horz ton avoid the fiscal cliff, the fact that the republicans put out an offer, like their old offer before the president won re-election, it does feel like the two sides are talking, but they appear to be talking past each other. the clock is ticking in washington. ticking against a dealing. i think the two sides seem to hate each other more than ever. i don't now, it seems like the last 72 hours i was hoping it was going to get better and it seems like it got worse. i spent a ton of time this weekend hanging with old college chum, grover norquist. he's as certain as ever that republicans who have impure thoughts about violating his no new tax pledge will be targeted at the primary level by tea party members. i'm taking this masterful behind-the-scenes player at his word that he controls almost all the republicans. because almost all of them signed his oath. so a deal could be tough. plus i'm now calling for no vacation without legislation. no vacation without legislation. because the holidays are slated to begin in a couple of weeks. which doesn't give enough
CBS
Nov 29, 2012 5:00pm PST
hill to work on a "fiscal cliff" deal. house speaker john boehner came out of his meeting with the treasury secretary demanding the white house get serious about spending cuts. >> no substantive progress has been made in the talks between the white house and the house over the last two weeks. >> reporter: if a compromise isn't reached soon, automatic tax hikes and steep budget cuts will kick in january 1. geithner moved from one end of the capitol to the other encouraging lawmakers to sign off on an extension of middle class tax cuts now. democrats say their position is clear and they want a serious offer from republicans. >> the american people want us to avoid the "fiscal cliff" with a balanced approach. >> reporter: geithner is here in the halls of congress trying to clear some big hurdles with republicans. once a deal is closer president obama will take over the talks. so far independent senator joe lieberman is not encouraged. >> if we go over the cliff it's going to send the country back into recession. >> reporter: vice president joe biden stopped by a washington, d.c. costc
PBS
Nov 29, 2012 4:30pm PST
conversation by asking you, what are the chances that we will get a fiscal cliff deal by the end of this year? wince think they're reasonably good. all the building blocks are in place. at this point really people just have to choose from the options that are available. and it's hugely consequence for the country if we fail. so i remain opposite sdns-- optimisc. >> we heard dramatic sound bites when do we start rung out of time and risk going over the cliff? how much time dow need to get an agreement? >> well, realistically, if an agreement were reached in the next several weeks there would be time to get all of the language put together to have it implemented. so there is still significant time to get this agreement reached. >> as you know house speaker boehner was calling on democrats today to propose specific spending cuts to entitlement programs. we foe that the white house is proposing around $300 billion in cuts to medicare is that all the program can take or are republicans right in saying there is more room to cut entitlement spending? >> well, look financial they think it should
PBS
Nov 28, 2012 6:30pm PST
business leaders in washington today to persuade president obama and congress to avoid the fiscal cliff. with just 33 days left to nail down a deal, c.e.o.s made the rounds to explain to lawmakers that because of cliff gridlock, they're holding back on hiring and spending. as darren gersh reports, c.e.o.s weren't the only ones campaigning hard today. >> reporter: the president and republicans focused today on staging events designed to pressure the other side. the president called on americans to tweet, facebook and call members of congress to tell them to pass tax cuts for everyone making less that $250,000 a year. >> 97% of small businesses would not see their income tax go up by a single dime. even the wealthiest americans would still get a tax cut on the first $250,000 of their income. >> reporter: the speaker dismissed a call from a fellow republican to give the president what he wants, saying it's not good economics to raise tax rates on small businesses. >> going over the fiscal cliff will hurt our economy and hurt job creation in our country. this is not good for our country. it's as simple as that, and the president understands i
FOX
Dec 5, 2012 5:00pm EST
the need to strike a fiscal cliff deal and what they were doing is tacking with each other, with no new talks scheduled between the major players in the debate and the speaker of the house finds himself defending his own plans for members of his own party. in northwest d.c., president obama is on the hard sell trying to convince a group of business executives to support raising taxes on the wealthy. >> let's allow higher rates to go up the top 2%, and that includes all of you, yes? >> reporter: saying a fiscal cliff deal must include new revenues. the president pushed his plan to raise taxes on household earning over $250,000 a year. >> and i am here to tell you that nobody wants to get this done more than me. >> reporter: john boehner has a hard sell of his own with conservatives upset over his offer of $800 billion in new taxes. >> the plans the white house has talked about us this far, they could not pass either house. >> reporter: a "washington post" poll finds 53% would blame republicans if the country went over the fiscal cliff while only 27% would blame the president. >> we n
CNBC
Dec 5, 2012 3:00pm EST
. we're going to hear from somebody who says a deal on the fiscal cliff could have already been reached if only lawmakers took a page out of wall street's deal making strategy of keeping things behind closed doors. where have we heard that before? >>> plus, secretary tim geithner with us exclusively. will the white house let our economy go over the fiscal cliff if a deal on higher tax rates for the wealthy is not reached? we're checking it out. back in a moment. [ male announcer ] research suggests cell health plays a key role throughout our lives. one a day men's 50+ is a complete multivitamin designed for men's health concerns as we age. it has 7 antioxidants to support cell health. one a day men's 50+. it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. >>> welcome back. this very public negotiation on the fiscal cliff still does not seem to be closing in on a deal. the white house out in campaign style events regularly, making multiple media appearances, kle including timothy g
CBS
Dec 3, 2012 5:30pm PST
won't be a fiscal cliff deal without that tax increase. the white house today dismissed that counteroffer as nothing new and urged republicans to "get serious about the fiscal cliff negotiations." but, scott, that's exactly what republicans were saying about the president on friday. >> pelley: wyatt, thank you. the president has not decided whether to order an end to a strike that has crippled traffic at the nation's two busiest seaports. the ports of los angeles and long beach shut down after a few dozen clerical workers walked off the job and dock workers refused to cross their picket line. bill whitaker has the latest. >> reporter: 11 huge cargo ships are stuck offshore, piled high with containers of food, toys, lumber. 14 others sit untouched at the docks. >> if you guys could start handing the fliers out. >> reporter: transporters, wholesalers and retailers are growing angst. ingrid lazcano, owner of andean dream, imports quinoa, popular right now in the u.s. her last shipment was diverted to mexico, another was diverted to chile. >> we have about $400,000 worth of merch
MSNBC
Dec 5, 2012 2:30am PST
rock in new york city. and we begin with the latest on the rapidly approaching fiscal cliff deadline of automatic tax hikes on everybody and what appears to be a stalemate in the negotiations. in his first interview since the election, president obama reiterated his demand that any deal must raise taxes on the highest earner. yesterday obama also appeared to showroom for flexibility on actually relowering those tax rates in the future. >> i don't think that the issue right now has to do with sitting in a room. the issue right now that's relevant is the acknowledgement that if we're going to raise revenues that are sufficient to balance with the very tough cuts that we've already made and the further reforms and entitlements that i'm prepared to make, that we're going to have to see the rates on the top 2% go up. and we're not going to be able to get a deal without it. p what i've suggested is let's essentially put a down payment on taxes. let's let tax rates on the upper income folks go up. and then let's set up a process with a time certain at the end of 2013 or the fall of 2013 where we work on tax reform, we look at what loopholes and deductions both democrats and republicans are willing to close, and it's possible that we may be able to lower rates by broadening the b
KICU
Dec 4, 2012 7:00pm PST
removed from the house budget committee where elements of a fiscal cliff deal are to be considered. meanwhile president obama held his ground insigs on higher tax rates for the top 2% of the wealthiest americans. >>> the political wrangling but a damper on wall street as stocks finished slightly lower in a light strad trading day. the dow jones industrial lost 13, the nasdaq shed 5. shares in oakland-based pandora are plum etting after hours. the internet radio company posted better-than-expected quarterly results but lowered its outlook for the rest of the fiscal year. the company is facing stiffer competition from the likes of apple and microsoft. both companies are launching their own music service. pandora shares dropped 17% after the closing bell. >>> now, numbers and new numbers show home sales in california remain steady, a sign of the recovering housing market, but as john reports, in one bay area community, the supply of homes on the market is as tight as can be. >> tuesday's in walnut creek are normally reserved for real estate brokers to tour each other's available homes
PBS
Dec 5, 2012 7:00pm PST
cliff deal by president obama are aiding share prices. i guess port-related issues are leading the gains as the weakening trend of the yen is continuing. so let's take a look at the currency markets. the dollar is higher against the yen. that's on better than expected nonmanufacturing data out of the u.s. 82.40-43. euro/yen, that's in the mid 107 yen levels this thursday morning. taking a look at other markets in the asia-pacific, south korea's companiespy is 1949. let's take a look at australia. the benchmark index is lower by about.25%, 4508. let's see where china takes us when they open the next hour. >>> european commission regulators have imposed a fine worth almost $2 billion for running two price-fixing cars sells. they say it's the highest-ever anti-trust penalty in their history. the commission leaders said they fined six companies a total of $1.47 billion euros for anti-competitive behavior. the firms are panasonic and toshiba, samsung sdi and lg electronics, phillips and technicolor. they say the officials of those companies met a number of times until 2006 to manipulate
Comedy Central
Nov 30, 2012 10:00am PST
other democrats are saying entitlements for this fiscal cliff deal are off the table. >> jon: okay so, the only way to solve there sen titlement reform and tax revenue and those are both off the table so-- i don't want to close my eyes ♪ ♪ i don't want to fall asleep ♪ ♪ because i miss you girl ♪ don't want to miss a thing ♪ ♪ (laughter) >> jon: really? pen microphone? i guess this means there's no way of avoiding the fiscal cliff, the self-imposed fiscal-friendly fire. unless, no, no, way. i could never -- perhaps. we can solve this numbers problem with words. >> frankly i call the fiscal abyss. >> more like y2 k. >> more like a bermuda try and egg. >> more like a grand canyon. >> taxmageddon. >> it's a hill. >> jon: hill, hill, that last one i like that last one. hills are much less scary than cliffs. or canyons or bombs, or mageddons. rather than fixing there, why don't we just call this bad thing something less bad. >> it's more like a fiscal slope. >> i think it's an austerity sloping crisis of some kind. >> jon: now we're cooking with gas, or whatever we're renamin
FOX
Dec 5, 2012 12:00pm PST
fiscal cliff deal that include as tax increase for the rich. he met with business leaders in washington d.c. and he is aware that some republicans may be willing to raise tax revenues. but he warped the gop not to pick another fight on the debt sealing. he was can dade -- death ceiling and he was can -- he was candid. >> this is the top 2%. includes all of you, yes. >> i believe there is a purpose to put revenues on the table. >> house speaker boehner countered the president's proposal without raising individual tax rates. the republican plan also includes 600 billion in spending cuts to federal healthcare programs and increase in the eligibility age for medicare. >>> a san francisco blogger and activist is in hot water of a photograph after political opponent. michael petrellis took this of scott weaner last year in a pact room. >> he tried to take a picture of him at an urinal. and today, he pleaded not guilty to misconduct. he wants it to be made as part of the from. >> we will be fighting the case and despite the fact that the photograph was taken, we are talking fundamentally of a
MSNBC
Nov 30, 2012 7:00am PST
should go off the fiscal cliff, that it will push them to negotiate a sort of more thoughtful deal -- >> right. >> -- they say that it's not a fiscal cliff, it's, you know, more of a slope. having said that, what is your thought on the psychological impact if we go off the cliff? >> it's huge. it's tremendous. it's absolutely tremendous because it will go across the board from regular americans who are going to see their taxes go up from $500 to $2,000 for middle-income household. this is going to affect their bottom line tremendously. that's groceries. that's saving money. that's their savings money for the year. but also what about mortgage interest? will that affect the housing market? there may be initial -- basically, it will go back down again, the housing market. or if it gets phased in, maybe we'll see a jump because people will rush in before the deduction completely goes away. but i think there's a lot of concern and a lot of panic among regular americans about will i lose these tax deductions? and what's that going to do to the ability to pay all my bills? >> yeah, and that might ju
PBS
Dec 4, 2012 6:00pm PST
cairo today. >> ifill: we continue our series of conversations about the fiscal cliff. tonight we hear from economist paul krugman. >> i don't think there's going to be much of a deal. i think there's going to be a kind of... there will be an outcome. >> woodruff: from haiti, fred de sam lazaro reports on the efforts to stem a deadly cholera epidemic that began after the 2010 earthquake. >> ifill: and ray suarez talks to author and journalist tom ricks about what he describes as the decline of american military leadership. >> today nobody gets credit for anything and mediocrity is accepted as a core value in the performance of generals. >> ifill: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by: moving our economy for 160 years. bnsf, the engine that connects us. >> and by the bill and melinda gates foundation. dedicated to the idea that all people deserve the chance to live a healthy, productive life. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you
FOX News
Dec 7, 2012 3:00pm PST
>> dana: three one more things. >> greg: you had three more. three good things. >> bob: number one. >> greg: number one. speaking of number one, me -- no. catch me on greta tonight. i'm on her first block of the show. "red eye" we have ann coulter and gavin mckinnon on. >> bob: can you do something that is not self-promoting? >> greg: no. storm the first day of hanukkah. celebrate a happy holiday. that is it for us. have a great weekend, everyone. >> john: another weekend no, deal on the fiscal cliff. how close one is depends on whom you believe. this is "special report." ♪ ♪ >> john: good evening. i'm john roberts in for bret baier this evening. deadlock, gridlock, stalemate, whatever you call it. most people in washington seem to think we are there. we have just four more weekends to go before america goes over the most talked about piece ovate i of real estn the world, the fiscal cliff. ed henry tells us not everyone is pessimistic. >> reporter: literally snapping his fingers, vice president joe biden today suggested it will be easy to finish a deal with congress to avoid the fiscal cliff. >> it would take 15 minutes from the time the decision is made by the speaker of the house to pass and make permanent middle class tax cut. the president would probably have me sprint up to the hill to bring the bill down for him to sign. it can be done like that. it is not complicated. >> greg: speaker bane -- >> reporter: speaker john boehner not so optimistic. >> this is not a progress report, there is no progression to report. report. >> reporter: he blasted for not offering a counterproposal to his plan and they seemed more than ever going to stop the tax increase. economy shrugged off hurricane sandy to create 146,000 new jobs, nearly double what forecasters had said, job creation for september and october was revised downward by a total of 49,000. another 350,000 people were so discouraged in november they simply stopped looking for work and left the labor force, which is why the unemployment rate dipped to 7.7%. >> raising taxes on small businesses is not going to help our economy and it's not going to help those seeking work. i came out the day after the election to put revenues on the table. take a step toward the president to try to resolve this. when he is going to take a step toward us? >> analysts say anxiety over the higher taxes from fiscal crisis is a reason that consumer confidence plunged in december. thompson reuters dropped to 74.5 in the consumer sentiment, lowest level since august. vice president countered that business leaders are telling him the economy will take off if there is a fiscal cliff deal. >> they have over $1 trillion out there to invest. if they think that the economy is going to move. >> he suggested some wiggle room to get that done. >> the top brackets have to go up. this is not a negotiable issue. theoretical we could negotiate how far up. >> democrats noted today despite boehner's tough talk when he was pressed on whether the tax rates on the rich could be negotiated he initially ignored it and then suggested some flexibility. >> there are a lot of things that are possible. to put the revenue that the president seeks on the table. >> now white house officials are clear in saying they still want the tax rate to go up to 39.6% like in the clinton days. but it's clear tonight they will give on that a little to get a deal. john? >> john: we'll see how far they will go. ed henry for us at the white house. thanks. the borrow a phrase "grease is the word" that both sides in the te bait are using for the worst case scenario of what will happen in the fiscal cliff. which sides understands best how to keep the united states getting in the same greek tragedy? chief congressional correspondent mike emanuel looks at that tonight. >> republicans frequently argue it's critical to get a handle on the deficit before the u.s. becomes like greece. there is a terrible economy with 26% unemployment highest in europe, almost no job opportunities for young people frequentenly lead toro riots in the streets. here is leading democrat is suggesting cutting spending too quickly is a real problem. >> the european community now is concerned about all the austerity. there are many, many things you can do to reduce debt. but still have a stimulus aspect of the economy. >> experts though say europe's us aer the city a drag on the economic growth because it relies too much on taxation while failing to reign in the expansion of government. that would seem to back up a republican theme in the fiscal cliff argument. >> if we raise taxes on the top two rate, a million small businesses who employ 25% of the work force it will cost us over 700,000 jobs and reduce economic growth, lower take home pay and those things. that is a bad scenario. >> the league negotiator on the republican side of the table facing mr. obama says raiding taxes on upper -- raising taxes on upper income americans is not going to fix the problem that the country is facing. >> even the president got the tax rate hike he wanted understand we would continue to see trillion dollar deficits for as far as the eye can see. listen, washington has got a spending problem, not a re-knew problem. >> for many top democrats it's all about taxes and not spending cuts in averting the fiscal cliff. >> the facts are at that point the 39.6% does produce the revenue. the differentiation between 39.6% and the 28% at that the president has for limitation on deduction creates a great deal of money as well. >> one conservative financial commentator suggests the likely outcome of the fiscal cliff talks won't be the end of the world. >> we will have taxes that are the same as the taxes were under bill clinton. we did find that we will do fine. >> the question is whether the negotiations will lead to making other tough choices such as washington getting a handle on the growth of government. if not, the european example seems to suggest fiscal trouble to our shores as well. >> john: thanks. the stock were mixed. dow gained 81. s&p 500 up 4. president obama visits detroit and he will see upset people there. mike tobin has the effect. >> michigan democrats say they can't stop, as the republicans have the numbers so despite the angry protests the legislation that rick schneider calls freedom to work will pass the final vote on tuesday. we have hardworking people in michigan. >> the law makes union membership and dues optional in the heart of the rust belt. cradle of the organized labor. they insist they are not breaking the labor union because it does not target collective bargaining. this weakens their foundation. >> you have people alongside of you that won't pay the union dues if you pay the union dues but will still be able to get the benefit from being union member. >> spokesman for democratic caucus says to anticipate legal challenge is understatement. democrats will target the language in the laws. given the bill through the lame duck session and noisy demonstrators out of the chambers the democrats say they will challenge under the open meetings laws. >> they lied to us every step of the way and they are acting like cowards. >> he says it's leadership. >> baloney. >> as demonstrators storm the capitol, police used pepper spray. additional state troopers sent to lansing today with anticipation that the demonstrations will peak on tuesday. >> we want to keep things safe. we will not have another wisconsin in michigan. people have a right to protest. but it will be done in an orderly manner. >> now the buildup to the michigan house contains $1 million appropriation. that is significant because under michigan law, appropriation bill cannot be challenged by a referendum. john? >> john: mike tobin repor reporting in chicago. more with the panel. house speaker john boehner is taking it from all directions this week. president obama and democrats are ripping him for resisting tax hikes on the rich. boehner's own party is giving him a hard time for not resisting hard enough. chief political correspondent carl cam has a deeper look at -- carl cameron has a deeper look at that story. >> john boehner is trying to stave off conservative rebellion in the ranks. his proposal to steer clear of the fiscal cliff raising tax revenue $800 billion closing the loopholes outraged antitax conservatives. when the speaker removed the conserve priv key committees in the past, the battle began. >> $800 billion over ten years and that looks like it would be a tax increase to me. 238 republicans, myself included, took a pledge not to raise taxes. they want to send a message to me to send a message to others. that we are not going to tolerate people who are interested in doing what is right. we want to play the same old game. if you try to disrupt that, we will knock you off a committee. >> for refusing to tow the leadership line, two conservatives were tossed off the house budget committee and david swiekert and jones were bounced from the financial conservative committee. benching conservatives in the proposal to influence tax revenue has boehner under fire from conservative group, heritage foundation, red state.com, freedom work and heavy hitting club for growth. >> if you keep doing this we may have to replace you. >> it's bad policy. it is awful politics. it's, it will guaranteed, it will lose him the speakership of the house in two years. >> nancy pelosi. >> republicans lost the house majority in 2006 when they promised to cut spending and then increase it. bret bozell of for america inc. says the republicans face the same fate if after promising all year to hold the line or cut taxes they raise more. >> it's not a threat. it's a reality. if you bucked -- the republicans lost the house when they walked away from fiscal responsibility. they regained it when they recommitted themselves to the fiscal responsibility. if they abandon it yet again, it's a guarantee that the conservatives aren't going along with this. >> g.o.p. leaders reacted it will to the backlash. boehner raised $100 million for the house republican candidates this year. his proposal to increase tax revenues on the four rebel conservatives is backed by the house majority leader eric cantor with kevin mccarthy and budget committee chairman paul ryan. now they're under fire, too. >> in a perverse way, the purging was good. because it provided clairryty with what we thought was true that the leadership didn't hold the conservative principles in first place. they just want 218 votes on something. they are not dedicated to what the content is. >> this internal g.o.p. fight has been overshadowed by the bigger battle over the fiscal cliff. but the politicians get it. this year, the club for growth spent $10 million against republicans they felt were not conservative enough. in a campaign ultimately that didn't even go the g.o.p.'s way. john? >> carl, thanks. late today three of the four republican lawmakers kicked off with the committees wrote to boehner demanding explanation from him on the close of business on monday. the supreme court will take up two cases dealing with gay marriage next year. it will decide whether gays of v the same constitutional right to marry as heterosexuals as it rules on california proposition 8. justices will determine if congress under the defense of marriage act can depry legally married gay couples benefits that available to straight husband and wives. we'll have more on that with the panel in a little while. they can carry a tune all the way to the bank. but the top musicians backing up their rants against the 1%ers? that is coming up in the grapevine. up next, what happens if diplomacy fails in syria? begin. tomato, obviously. haha. there's more than that though, there's a kick to it. wahlalalalallala! smooth, but crisp. it's kind of like drinking a food that's a drink, or a drink that's a food, woooooh! [ male announcer ] taste it and describe the indescribable. could've had a v8. [ male announcer ] taste it and describe the indescribable. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. >> john: egypt political crisis entered the third week with two sides depicting the conflict as all-out fight for egypt's future. opponents of egyptian president mohammed morsi marched toward the presidential palace in cairo today after he rejected their demands. thousands of his islamists supporters vowed vengeance for two men killed in clashes this week. u.s. and russia are trying to get on the same page regarding syria. top diplomats today announce another effort stopping the bloodshed and getting rid of bashar assad. national security correspondent jennifer griffin tonight from the pentagon on what happens if diplomacy fai fails. >> rebel forces close in on the airport, the planners expect fighting in syria to intensify. u.s. officials are pessimistic they can resol t syrian conflict diplomatically, but seem certain that assad is losing his grip on power. >> every syrian must be included this process for a new and better future. future cannot include assad. >> military in meantime is actively planning should vit to intervene to assure assad's chemical weapons. hundreds of u.s. and nato troops will soon be heading to the turkish border with syria to operate patriot missile defense batteries. this summer there was a task force in jordan after 150 u.s. special forces base north of the capital to work with the jordanians to secure an estimated 4 dozen chemical weapon sites. >> there will be consequences. if the assad regime make asterrable mistake by using the chemical weapons on their own people. >> syrian government says the leaked intelligence reports that seren gas has been mixed and loaded in canisters are a pretext for outside military intervention. some experts agree. >> this is a very imprecise weapon and it's likely that the winds might blow the gas in the city center. that is where assad's power is, is in damascus. >> the publicbe talk of a possible chemical weapons attack may be a means of pressuring assad. >> the united states wants to gain the high ground but jeff hyping. the -- overhyping. the more they make the threat real the more leverage administration will have. >> at next week syria conference the pentagon realizes it may be asked to fill the vacuum after assad goes and is worried that the newly chosen opposition military command structure is filled with commanders tied to the muslim brotherhood. john? >> john: jennifer griffin at the pentagon tonight. thanks so much. fox news just learned by the way secretary of state hillary clinton will be testifying before the house foreign affairs committee on benghazi. that likely will happen before the end of the president's current term. >>> snow may be slowing north korea preparation for another rocket launch. south korean report that the north mounted all three stages of the vehicle may not have been accurate. satellite images indicate that the north could still be ready by monday. for what it says is the launch of a satellite. the west says it's not a satellite at all. just cover for testing missile technology. still ahead, remembering the glory days of america's manned space program. up first, though, remembering a day that will live in infamy. we will meet a man who sur viveed pearl harbor twice -- who survived pearl harbor twice. initiated. neural speeds increasing to 4g lte. brain upgrading to a quad-core processor. predictive intelligence with google now complete. introducing droid dna by htc. it's not an upgrade to your phone. it's an upgrade to yourself. stop! stop! stop! come back here! humans -- we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back with great ideas like our optional better car replacement. if your car is totaled, we give you the money to buy one a model year newer. call... and ask one of our insurance experts about it today. hello?! we believe our customers do their best out there in the world, and we do everything we can to be there for them when they need us. [car alarm blaring] call now and also ask about our 24/7 support and service. call... and lock in your rate for 12 months today. liberty mutual insurance. responsibility. what's your policy? >> john: president roosevelt declared december 7, 1941, a day that will live in infamy. on this anniversary of the surprise attack on pearl harbor, william la jeunesse introduces us to a remarkable man. who survived attacks on two battleships. and is now finally at rest with his fellow sailors, who died that fateful day. >> more than a year, radio third class glenly was on the uss arizona. on morning of december 7, he was about to take shower when the sounds of war boom outside. >> tried to sell some of his friends and they were like oh, lane, you always tell the april fool's jokes. get out of here. he said this is no april fool's joke, buddy. look out the window. >> this is the hat my dad wore. >> lane's youngest daughter trish anderson sat down with fox to talk about her father's life. >> he loved to share a story and he remembered every minute detail as if it happened yesterday. >> japanese warplanes buzzing the hawaiian skies, lane forced his way to the deck of the arizona. he helped put out fires before an explosion sent him fly manage the oil filled water. lane eventually made his way to the uss nevada desperately trying to escape the japanese attack. but it, too, was knocked out of commission. >> he is the only guy we know of in history that was on two battleships on december 7. i remember asking him one day why he swam to the nevada when other guys swam to fort island. an about four hours later he was almost through telling me the story. >> over the years, lane enjoyed talking to school kids and anyone else who wanted to hear his harrowing tale. last december, lane died at age 93. a few months ago trish and other members of the lane family gathered in hawaii for a service on the uss arizona memorial. lane's ashes inside an urn made by his son tom were carried by scuba drivers and entombed in gun number four. right given to all survivors of the upp ship. >> he never called himself a hero. peel would go you are such a hero. he said no, the heros are still down in the ship. >> william la jeunesse, fox news. >> john: after the attack, lane spent ten days on a hospital ship recovering from his wounds. this will tell you why he swam to theness. he was dedicated. he returned to service fighting battle of coral sea and midway. a the war he stayed in the navy and flew missions as part of the berlin air lift and served in vietnam. free speech could cost one consumer close to $1 million. they make millions off the 99%. but do music stars put their money where their mouth is? grapevine is coming up next. >> john: political grapevine. reply all failed from the police department. atlantic monthly reports a television producer worked on story about animal trafficking a month after the lapd held a press conference promising to crack down on the practice. the head of the media relations department sent the e-mail to fellow officer but accidently cced the producer. the story could be a black eye for us if we don't have arrests to show. the rabbit people will scream we don't care. is there any way you or your crew could make a few arrests for illegal animal purchase something we could avoid negative coverage? when called op it, the lapd officer said it was just a nudge to enforce the already existing law. every write a negative review on a website in this story may make you think twice before you do it. a judge ordered a woman to change negative yelp review about a building contractor. the writeup accused the construction company danieling her house and stealing jewelry. police found no connection between the company and the missing jewels. the construction company sued for three-quarters of a million dollars. the woman's attorney said it amounts to judge copy editing her review. >>> some of staunchest vocal supports of the 99% are prominent member of the 1'for vocal skills. forbes reports in the 25 highest paid musicians you will find four of them lip service to occupy wall street movement. roger waters of pink floyd made a video saying the country is being run for the benefit of the rich. he happens to be one of them. he made $88 million. katy perry visited occupy wall street with then husband russell brand and played it up on twitter and took in $45 million. jay-z told t-shirt to occupiers and didn't share the profits. kenye west turned up at occupy protest in gold chains. no word whether the artist mentioned will donate any of their wealth to the 99%ers who made them rich. >>> next week is 40 years since human walked on the moon. commanderer gene cerna turned out the lights on the moon so to speak. in the for decades, the domination of the space rights has been lost. this weekend, neil cavuto hosts a look back at glory days. "fly me to the moon" can be seen sunday at 9:00 eastern. a preview. >> there is no question in my mind creator of the universe. >> no atheists in space. once you see what you see. >> this is not two dust partials that eventually life. inconceivable. >> well put. >> the mission was over. >> i started up the ladder. and i look at my final footprint and i knew i wasn't coming back this way. the multi-multi-blue of -- multicolor blue of ocean and white of clouds. i started up the ladder. i wanted to keep this moment going for a while. >> america challenge of the day for man and tomorrow. >> you were the last human being to touch that surface. >> you were the last man to touch the surface, how does it make you feel? >> humble. >> god willing as we show return. >> for all man kind. godspeed to crew of apollo 17. ♪ ♪ >> the space program will come back. the country needs to have something to look forward to, to look up to and be proud of. what can we do in 10,000 years? my grand mother on a farm in michigan had a ring telephone no, electricity, outhouse and she walked the first guy walk on the moon. >> i would like to see the next generation leigh footprints of the moon. i hope it happens. >> get more evenly thoughts from charles krauthammer. >> i talked to kneel about that. he said those people represent a time in the country when it seemed we could do the impossible. now we can't cobble together deal on the fiscal cliff. what are your thoughts? >> humans lived in the sky for 100,000 years and finally got off the ground at kitty hawk. then it took 66 years to go from the flight a minute-and-a-half or so, kitty hawk to the moon. yet for the next 40, we lived in retreat. literally circling the space station studying the physiology of nausea. that's not what kennedy had in mind to say we go to moon not because it's easy, but it's hard. tragedy. >> going to moon is one thing. the next step is exponentially expensive than going to the moon. >> true. we have haven't used the moon. established a station as in antarctica on the moon. >> to study nausea? >> to study space. there is so much out there we don't know. heavenly body. different from earth. there are industries. everything out there we can discover. we retreated. there is also simply the majesty of it. i think if you don't, if you live in the age, and you don't glory to space travel, or to the magnificence of leaving footprint on celestial body you don't deserve to live in the age. you should be living in the middle ages traveling by mule. >> john: i am with you. watching walter cronkite covering the space race that led me to this business. when you have so many pressing interests at home is it worth it to spend money to go to mars? >> that was the argument made in kennedy's time. more post officeerty and race problems. a society always has intrinsic problems. the idea we'll wait until it's utopian one, before we venture to space is ridiculous. kennedy understood it. he infused a generation with all of that enthusiasm. now it's gone. >> i'm with you. i want to be on the first flight to mars. you? >> happy to see another launch. i missed the launches to the moon. you see it and you are changed for life. >> you are. charles, stick around. we'll be back with the panel. "fly to moon" airs sunday at 9:00 p.m. eastern. charles and panel coming up next on "special report." do not go away. my name is hunter cannon. playing sports is just my whole life. looking back, if it wasn't for shriners hospital, things would just be really, really different. i lost my leg when i was a kid. there was a time when i felt like i wasn't going to be able to walk again... it was a pretty bad accident but shriners showed me who i could be again. they turned my whole life around. they call it 'love to the rescue' and it really works. hunter's life is one of nearly a million changed by donations from people like you. send your love to the rescue. donate to shriners hospitals for children today. >>> instead of reforming the tax code and cutting spending the president wants to raise tax rates. but even if the president got the tax rate hike that he wanted, understand that we would continue to see trillion dollar deficits for as far as the eye can see. >> what is lacking are the revenues. you cannot cut your way to deficit retacks. what does reduce the deficit are somebody, job creation. we have spending cut and medicare saving and we need re-knew. >> john: four weekends until the country goes over the fiscal cliff. bring in panel. charles lane for "washington post" with us. nina easton from quot fortune" magazine and of course, sindcated columnist charles krauthammer. get to the fiscal cliff in a second. but first, the job report this morning, 7.7% unemployment because so many people left the workforce. 146,000 jobs. the question a lot of people are asking is when are we going get back to good honest job creation to grow the economy? what is it going to take? >> political will in a word. what is interesting about the jobs numbers and the economy in general is that it's not so much the fundamentals of the economy. businesses who hire people who create jobs which nancy pelosi is looking for are looking for political will out of washington. they are looking for certainty on the fiscal cliff. certainty that debt reduction, there will be debt reduction, that entitlements will be brought under control. looking for certainty on taxe taxes. until this happens, there isn't going to be that certainly. i have to say that the republicans showed the political will. they stood up, to the conservative base. they put the re-knews on the table. what troubles me -- now that the ball is in the white house court, right? what troubles me is lack of political will on the white house, we haven't seen yet. particularly on spending and entitlement reform. voices in the deckic party saying that this was a mandate to walk away from debt reduction. that is troubling. >> charles lane do you see anything out there to give the business confidence to hire people again? >> well, there is just, i agree with nina. too many unknowns. we could add the situation the slow, steady, stagnation of europe to the mix. we could add uncertainty about where china is going to go. the troubling thing about the departure from the labor force of so many people that is offsetting the increment is jobs is that over time, it seems like the percentage of the society that is active in the labor force is stagnant or shrinking. that kicks back to all the problems she is talking about, the entitlement program and so forth, which depend on the active population to support them. >> john: jump to the fiscal cliff. not just to it. charles, i read your column today and you made an interesting point that a lot of people didn't make that you see this is a political move by president obama to fracture the g.o.p. majority of the house, gain himself supreme power. >> well, that is because it's clear that the economic proposals, fiscal proposals won't do anything about debt. it's clear that his pretense that we are going to have to, that you can't get to the tax hikes he wants through rising, through raising the rates, without raising rates, he contradicts himself. he said exactly the opposite. so all of this is about the politics of it. he thinks he won the election. and now he can use the crisis over the fiscal cliff to force republicans to go against the position they have had for 20 years. like bush senior with read my lips. senly create a civil war among republicans. the fact that someone here said that the ball is in the president's court. he is holding the ball, not sevenning it. they haven't -- not sevenning it. they haven't offered anything. mcconnell laughed at the offer because it was so outrageous and he wants everything and republican offers nothing in the reduction in entitlements or discretionary spending. they walk away and they won't, i assure you they are not going to offer anything. they will try to run out the clock, because what they can see on the republican side is panic, and defections. even though there are stories about unity in the house. without unity the republicans will crack. >> you always said that the republicans need to stop giving things away. and if we are going to go over the fiscal cliff make sure that it's president obama who takes us over that cliff. is there any way they can do that, nina? polls show if we go over a fiscal cliff the american people blame republicans. >> they will blame republicans. >> john: how do you make it the president's doing? >> it's going to be very difficult. he knows he is in a powerful position. he has got, he has got -- politically he has got opposition to things like raising the age on medicare on his side. not going to budge on that. he has got the fact that jeff whelmingly people want to tax the rich. even though it might be bad for the economy or bad for small businesses. it's a political win for him. so he has every interest in dragging this thing out. and hitting republicans over the head. i somewhat disagree with charles. i'm not sure he is going to take the leap over the cliff. one possible point of compromise on taxes might be the buffet rule, where you put a minimum tax on people who earn just $1 million and above. i could see republicans possibly swallowing that. but not sure >> john: charles, lately there has been talk, too, that the republicans may give on tax rate increases if they can hold the president's feet to the fire over spending. when the debt ceiling comes up next, there is talk among democrats hey, mr. president, we will support you if you want to invoke the 14th amendment and call debt unconst. to you think it will come to that? >> the president disavowed intention. he is committed to the legal position you can't go to 14th amendment route. on the other hand he is demanding that the republicans back off on their debt ceiling threats as well. frankly, you know, i think he does hold the hand here. absolutely. charles is right he is trying to provoke a civil war in the republican party. i add it's working. you have tremendous disagreements being shown on the republican side. there are even people i talk to that say the best bet for republicans at this point is to capitulate. to give in on the rates at some level. just allow a whole new situation to develop next year. see what they can make of that. >> john: hold it there. we have a lightning round up next and your choice. locked and loaded. >> always taxes. spend it on a moon base. >> john: you and newt. we'll be right back. >> john: every week, viewers vote for your choice online in the friday lightning round poll. this week, charles krauthammer pick won with 74% of the vote. get to that in a second. first, latest on the supreme court and gay marriage. nina, the supreme court will take up a couple of cases in the spring session. one about proposition 8 in california, defense of marriage act. how do you think the supreme court will rule here? give me a bet. if they uphold the lower court rulings does it oop the flood gates? >> the reason that gay marriage hasn't provoked a civil war the way abortion did, it hasn't been imposed by the supreme court or major could recall. what is done is we have been going state by state. mostly by voters. couple cases state court but mostly by voters. if the court does impease gay marriage throughout the country, it will be an, explosive political issue. >> john: charles? >> the supreme court signaled today it's ware of that dange danger. out added two questions this the party themselves had not added to the case asking whether or not faye, the federal court should have jurisdiction over this. whether the parties were appropriately before the court et cetera. this shows to me that they are looking for a way to finesse this issue. so they don't come down one way or the other, unless they absolutely can't avoid it. precisely because these are people who spent their whole lives dealing with the fall-out of roe v. wade. they have seen what it's done the court and the country. further more, they can see the political movement is accelerating among the people and there may not be a need for court. >> john: snarl >> ironically, justice ginsberg stalwart liberal of court in a speech before going on the court talked about roe v. wade as stopping the natural evolution and political accept tans of what was the more changing on abortion and that it caused the strife. the one lesson is that allow the process to develop through referenda and popular vote. if there is a change in the culture, it will happen. do not impose a rule on the country from above, because if they impose on the country same-sex marriage, it will cause the reaction on abortion. people will feel they don't have a voice and they should in a democracy. >> john: all right. you won this week's viewers' choice, 74% goes to you. what is the question? >> landslide. the question is in three months, will bashar assad be president of syria? in exile in iran or russia? or dead? >> john: and? >> john: correct answer is dead. the reason is the russians are trying now to work out a way to get him out. or asylum. he might seek asylum. he is losing territory, military assets. and the rebels are near damascus. i think what is going to happen his own people, alouites, militia he is in command of will likely kill himmor family if he tries to escape. odds are he will be dead. >> "a," dead? "b," living in russia or iran? "c," still president of syria? >> i agree with charles and say dead. this is a man who declared war on his own country and made it clear he will go down with his country. he has killed 41,000 zillians, 20% of the population is refugees. there is talk of use of chemical weapons against his own population. i think the key for the united states is do we get in fast enough that we help shape the jut come of whatever comes after assad in because al-qaeda is in there. you don't want them to get a foothold even more than they already have. >> john: how do you think it will turn out? >> there should have been a "d" because he is looking for a home in equador. venezuela and cuba. >> he could be exiled and -- >> that poe dan tick point aside -- pedantic point aside. too hot to handle. i don't think they will harbor him but i go with still president of syria in 90 days. there may be a little exaggeration of how far along the rebels have gotten. they are divided among themselves. they're not going to move on him. even if they are in a position to do it until they are organized politically on their side. to see who gets to pick up the pieces. so he may still have more time than we think. >> john: one minute left and make this one a lightning round. what is going on with michigan with the right to work legislation. it look like the legislature, the full legislature will vote for it tuesday. governor said he will sign it. how do you think it will change things in the state of michigan? fifth iest union state in the country. >> it's showing you what is happening in the rust belt. you have had it happen in wisconsin and indiana. weakening of the grip of unions. we saw when the auto went in collapse, auto company in the south, transplants did well because they weren't saddled with the union wages but also the union work rules, which are insane. so i think will be l be loosening of the grip. way to stay competitive. >> astonishing this is all happening in the heart of union land, historically. i will add to charles, because it's the lightning round that ohio is next possibility. harder go there. it would have to be done by ballot initiative, weakening the union. >> john: five seconds or less. >> i agree with everything they said and the key is eliminating the dues check off on the public sector union of michigan because that is where the democratic party gets its money. >> john: senate voted for. see where that goes. thank you all. that is it for the panel. stay tuned to see how dogs are getting around these days. i've worked hard to build my family. and also to build my career. so i'm not about to always let my frequent bladder urges, or the worry my pipes might leak get in the way of my busy lifestyle. that's why i take care, with vesicare. once-daily vesicare can help control your bladder muscle and is proven to treat overactive bladder with sympts of frequent urges and leaks day and night. if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision, so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation, and indigestion. i've worked hard to get to where i am... and i've got better aces to go than always going to the bathroom. so take charge of your symptoms by talking to your doctor >> john: finally tonight, you have probably seen the videotape, three dogs in new zealand were actually taught how to driver mini coopers with paw activated accelerators and brakes. few believe like humans dogs should keep the environment in mind when learning to drive. >> with the number of dog motorists at an
MSNBC
Nov 29, 2012 7:00am PST
v8 v-fusion. vegetable nutrition they need, fruit taste they love. could've had a v8. or...try kids boxes! >>> good morning. right now, the push is on to get a deal. but consider this. congress has just ten legislative days before going off the cliff, but the president and speaker boehner have not met in 13 days and a reported phone call yesterday was described as curt. tim geithner is about to meet with each leader this morning to talk about the fiscal cliff or slope or curve. but whatever you call it, politico's front page headline reads, fiscal cliff deal emerging. it hashes out the flame woframe agreement including $400 billion in cuts to entitlements. but how close are they really? depends on who you ask. >> what's going on between the decision makers is little to nothing. >> you can actually now see what the contours of the deal look like. >> i'm optimistic that we can continue to work together to overt this crisis and sooner rather than later. >> we will not negotiate the end of medicare. i don't know what it is with these republicans. >> it's safer if you're on the progressive end of the political spectrum to go over the fiscal cliff than it is to agree to some of the things they're talking about. >> ruth, where do you stand, deal or no deal? >> not who deal, but who are more pessimistic. the clock is really ticking. about ten legislative days left in the year. outlines are there but the willingness to do it and the ability to get it done in time, i'm more disappointed than i thought i would be at this point. on the other hand, this is the moment of posturing. so it could all come together at the last moment. a christmas present. >> there has been plenty of that. tim geithner, he's going out to talk to these leaders. what does he say, for example, in these meetings with reed and t reid and the other leaders? >> opening line is it's dangerous to get over the cliff so let's get there. my reporters tell me there are contours to a deal. the senate democrats moving a little on entitlements. a day after dick durbin number two democrat said we shouldn't talk about entitlements in the fiscal cliff deal. i'm hearing from senate leadership aides who are saying it's the republicans' job to put entitlements on the table. we don't want to negotiate with ourselves. we don't want to put both tax increases and entitlement cuts on the table. it's up to republicans and we'll come back with a counter. you can't force us to put an opening bid on entitlement cuts when we don't want any to begin with. and that's the movement. so i think even in public there's starting to be a little bit of moving and i think there is the ability for folks to get there. >> we do know pretty clearly i think that the white house thinks they have the upper hand. here is the president from his event yesterday. >> today i'm asking congress to listen to the people who sent us here to serve. i'm asking americans all across the country to make your voice heard. tell members of congress what a $2,000 tax hike would mean to you. >> so he's got his outreach to middle class americans. we saw him meeting with business leaders. his event is planned for tomorrow. we campaign-like and he is still using the campaign actually, more than a million people responded to that survey that obama for america put out and said they're interested in volunteering. so is part of what the president is feeling the security he's feeling about getting a deal done the way he wants to get it done from we the people? >> either security or arrogance depending on your perspective. the campaign never ends. and the question and i do think it's a question is whether the sort of get the public to weigh in here is more effective than get in the back room and cut the deal. i would say one of the things that's very different about this negotiation than, say, the debt ceiling negotiation is, first of all, there has been an election as the president is kind of the first one to remind people. and number two, though, i think secretary geithner does not think going over the cliff is a good idea, i think that he, the white house, the president, are way more willing to take that risk of going over at least for a few weeks than they were in confronting the debt ceiling where they felt that their leverage in negotiating space was much more constrained. so that's why you're seeing a hardening to some extent of the position on the white house side. they did think they have the upper hand. >> stand by, i want to bring in chris van hollen. good to see you. >> great to see you. >> from what you're hearing, are you close to a deal? >> we're not close to a deal. everyone's continuing to work very hard to get a deal. the president and secretary geithner reaching out to capitol hill as the president is reaching out to the country. >> let's talk about some of the numbers. politico reporting $1.2 trillion in tax increases. $400 billion in entitlement cuts. mostly from medicare. another $1.2 trillion in spending cuts and war savings. does that soiund like it's in te ballpark to you? >> i think it's too early to say what's in the ballpark. the overall question you're asking is how much will come from revenue, how much will come from cuts. there's been no agreement reached on that yet. and you have to fill in the details. >> let's talk about one of the things that is getting conversation today. if the republicans give on raising taxes, and we know that skr john boehner and a lot of republicans have said they don't want to raise taxes on people making over $250,000 a year. but if they're willing to do that, they will certainly want something significantment in terms of entitlements. but the deal that's being talked about would delay the cuts for 10 to 20 years. do you think they would buy that is th is this. >> i think the detail we're talking about is not something we've gotten into yet. the president has in his own budget that he's proposedoff $300 billion in health savings. but democrats don't want to simply transfer rising health care costs on to the backs of seniors. that's what the republican proposals would do. what we want to do is lower the over all costs within the system. the president has a number of proposals to do exactly that. and so that's been the big difference. the difference republicans again saying they want to pass the bill on to senior citizens. democrats looking for ways to reduce costs in the system overall. >> would you be in favor of raising the eligible age for medicare, for example? >> i don't think that's a good policy. that's another example of simply transferring existing costs on to the backs of seniors. so that doesn't reduce overall health care costs which is what we should be focused on, what cl is what we did in the affordable care act and we should build on that. but that's an example of simply passing on a cost leaving a lot of people between the ages of 65 and 67 uninsured. so we should be looking for alternative ways of doing it. shy add, chris, that another really important part of this conversation in addition to long term deficit reduction is making sure that we get sustained economic recovery. we saw some good numbers today, but we want to make sure that we sustain that recovery. and extending middle class text cuts is part of it, but so is investing in our infrastructure, so are other elements of the president's jobs plan that should be part of this overall agreement. >> we have seen several liberal democrats to say that it is better to go off that cliff than to get a bad deal. and i'm wondering if you agree because it seems like the ceos who came out of the meeting with the president yesterday were most worried or at least seriously worried about the effect of not getting a deal on time and the effect that will have on the economy. >> we absolutely want to avoid going over the fiscal cliff because it would be a big drag on the economy. >> but are you willing to do that? >> what we're willing to do is come up with a package that both accelerates economic recovery, but also begins to reduce the long term deficit and the president's been very clear that that means asking higher income earn eaers to pay who are. more. so the real question is whether republicans will agree with tom cole who the other day said we should agree with the president. so let's get that done. let's not hold the middle class hostage to getting a bonus tax break for folks at the top. so it was great to hear tom come forward on that. obviously he's taken some heat within his caucus, but that would obviously avoid the fiscal cliff. >> congressman chriss van hollen, thanks so much. appreciate it. >>> so he mentioned tom cole. let me play what he had to say. >> the president is willing to accept 80% of the bush tax cuts for 9d 8% of the american peopl and make them permanent, we should do that and continue to fight for the things we believe in. >> so, chris, you know john boehner said tom cole is a friend of mine, but i disagree with what he had to say. chuck todd's analysis is that this could be great for boehner from a negotiating standpoint. does tom cole play into all this? >> he certainly does. what tom cole is thinking is leverage. and right now democrats have a lot of leverage. they can make the case to the american people that by being obstructionists, republicans are preventing a tax cut for everyone, including the middle class. and if republicans go along with the president on this, and they lose this small battle, then they will give up the tax increases on the wealthy, which they don't want, for a big tax cut to the middle class. that takes one of the democrats' biggest talking points off the table going into next year and they can live to fight another day during tax reform to bring those rates down for the wealthy and continue that fight while most americans already are enjoying their tax cut. so while it seems like a concession, it could be a strategic move by republicans to be able to make themselves some room to come back next year in a much stronger negotiating position. sf >> i want to bring up the other big topic on capitol hill and that is susan rice and the republican opposition to her only seems to be growing. >> it's obvious that she chose to emphasize some aspects and down play others. and frankly, i think the u.n. ambassador along with the secretary of state should be above politics. >> i would just ask the president to step back for a moment and realize that all of us here hold the secretary of state to a very different standard than most cabinet members. >> so i guess the question now is with this growing it seems opposition, does it make it less likely that she's going to get the nomination or is the white house going to even push for it harder? >> i think in some sense it's becoming a little bit a, pardon the phrase, test of manhood for the president. it's just extraordinary to see this kind of argumentation over somebody who has not yet been nominated. usually we wait for the nomination to have the argument about whether somebody should be confirmed. but the president clearly likes susan rice. i'm told that he wants her. there is a confidence on the part of senate democrats that she would be confirmed. and frankly, at this point, how would the president look in terms of his strength and bargaining if he were to back town in t down in the face of the opposition? a lot of democrats are wondering whether this is worth the cost given all the other issues that the white house needs to address. but i guess i'm coming down on the side of more likely rather than less likely in terms of the nomination. >> and we haven't heard a peep from john kerry and apparently he's told people don't push for him. so interesting strategy there as well. chris, ruth, thank you both. >>> also today, as the u.n. general assembly gets ready to vote on whether to upgrade palestine's status, israel says it would be a violation of their peace accords. mahmoud abbas submitted a resolution asking to be recognized as a nonmember state and it is likely to be approved with the support of several european countries. israel says it could respond by withholding money or security cooperation from the palestinian authority in the west bank. the u.s. is against recognition. at toys r us. s think you can get similar items at walmart for a lower price? i don't know. let's go see. disney princess bike -- $58. over $11 less than toys r us. wow! that's great. and assembly's free. toys r us charges 10 bucks. that's awesome! razor electric scooter. no way! it's a savings of over 30 bucks! oh -- that is awesome! on those two items -- you could save $42.98 versus toys r us. that is so good! i know! see for yourself -- bring in your christmas list and see how much you could save on the brands you want. walmart. why use temporary treatments when you can prevent the acid that's causing it with prevacid24hr. with one pill prevacid24hr works at the source to prevent the acid that causes frequent heartburn all day and all night. and with new prevacid24hr perks, you can earn rewards from dinner deals to music downloads for purchasing prevacid24hr. prevent acid all day and all night for 24 hours with prevacid24hr. >>> a week from today, marijuana whether become legal in the state of washington. voters in both washington and colorado voted to legalize the drug for rec reactireational us. the drug war was a key topic as well during president obama's meeting with the president elect of mexico earlier this week. a country that funnels massive amounts of illegal drugs in to the u.s. each year. a new article in new york magazine takes an in-depth look of the evolving would are on drugs. joining me is the author and military analyst and former drug czar. good to see both of you. good morning. benjamin, absolutely a fascinating article. you point out that there has been a real change in people's opinions. these are the people who are in favor of recreational use. 50% now. it was 40% in 2009, 30% in 2000. clearly the pr war is being lost by people who oppose legalizing drugs. is the war on drugs lost, as well? >> well, there are two different things going on there. first on pot, which is the number that you're talking about, the more striking number for me is actually the funding that went into the campaign if washington which is the place where the legalization dam kind of broke. people who are for pot legalization put $6 million into campaigns there. people who are against put $16,000 in total. so i think that there is just very little energy in american life to uphold marijuana prohibition. the more complicated question both in marijuana and when it comes to other drugs is if we're willing to declare the war on drugs not a success to say that something has failed, what are we doing instead. legalization is not really an option for harder drugs. and so the kind of questions that the president elect of mexico are confronting and that police commissioners are confronting in the united states are what is a kind of mored in earn way to take the war on drugs if we're willing to say that things have not worked so far, but we're not willing to radically legalize. >> general mccaffrey, there was a blue ribbon panel this summer that concluded that the war on drugs has failed, although they say with devastating consequences. to benjamin's point, is there a more modern way to fight this war? >> well, by the way, i congratulate him on his article. it's one of the more thoughtful things i've read in a spate of nonsense that has been published. i'm out here in seattle where the state voted to legalize personal possession of small amounts of drugs. in conflict, the federal law and international trading. i spent a lot of time in behavioral health care chronic addiction. crc health group, nothing's al association of drug courts. i basically think it's a bad idea to have increasing use of drugs, schedule one drugs, to include marijuana, in the workplace, in the home, in the schools. so i think we're on unchartered ground. it's hard to know where this is going. 14 years in a row, we have reducing rates offed a less tent drug use. the last three years have gone up. i think ten years from now, we're not going to like where we are. >> well, let's talk about one thing that is very obvious and benjamin, we've reported a lot on this. and that's drug violence in mexico. and you point out that nearly 60,000 people in six years have been killed in the drug wars in mexico and elsewhere. and disturbing employee thought you talk at the end of your article about the mexican mafia is operating in northern california. are there serious indications that they are and what are the chances we'll see more drug violence here in the u.s.? >> no, i don't think that there are of-that the mexican mafia is this a huge way involved in drug distribution at a local level inside the united states. i think one thing to keep in mind, the general talks about adolescent drug use numbers, but the numbers for overall drug use in particular for overall chronic drug use are down pretty dramatically over the last decade and a half. if you look at the numbers for cocaine, for example, according to the national household survey, we have half the number of chronic cocaine users that we did just six years ago. that's astonishing. so i think in the long run, what we're talking about is a market for drugs in the united states, particularly hard drugs, that is diminishing. and i think what you will see and that what we've already seen in the long arc since the crack epidemic is a decline in the violence that accompanies that. now, south of the border is a little bit of a different question. one of the things we've seen with cartels in the last couple of years is that they are moving a little bit away from the drug traffic exclusively. so part of the problem in mexico and particularly in the central american states is that you have cartels getting in to extortion, kidnapping, sort of assuming the role of the government in places where the government's ability to secure the territory is not so strong. so for me the long run picture north of the border in the united states is pretty positive. the long run picture south of the border is more complicated. and i think a lot of what the president elect in mexico has been talking about has been that imbalance. >> let me respond. >> go ahead, general. >> let me put a counter point on the table. the mexican mafia, the cartels are now the dominant organized crime in 230 u.s. cities. they probably are the dominant controlling authority in over 1,000 mexican municipalities. it's not whether they will come. they are here. so if you're in sacramento or washington or a lot of these places, that's who their wholesale distribution are. they won't get out of the distribution of marijuana in the state of washington, i can assure you. so we have to remember that. now, the local distribution of grug, i think benjamin is correct, the foot soldiers are gangs. they're recruited in american prisons. they're involved in the it is frid distribution. final notion, just put this on the table, we don't lock up people for smoking weed. we don't arrest, prosecute and jail them. that's nonsense. you get locked up because you're involved in felony offenses, you're a chroniced a difficult, you're unemployed, you got stds, everybody hates you except your mother. chronic addiction has gone up, i might add, in the last three years. only now it's synthetic opiates. so what we say in the drug treatment field is we don't care what your addiction problem is, we're concerned about its impact on your physical health, your employment, your family relationships, you're breaking the law. that's the problem. >> i'd love to do an hour on this. it's fascinating. people should read benjamin's article. a great bit of reporting. general mccaffrey, always a pleasure to have your expertise. >>> the frenzy over the largest power ball jackpot, it's over this morning. two winning ticket it is for the $579 million jackpot were sold, one in arizona, one in missouri. no word yet on who is holding those tickets. double check your numbers. 3 58 ticket worth $1 million each, 8 won $2 million. and in case you haven't checked, winning numbers are 5, 16, 22, 23, 29, power ball is 6. for the record, jansing and company invested $56 in tickets. we won $12 or about 87 cents per person. [ male announcer ] it's that time of year again. time for citi price rewind. because your daughter really wants that pink castle thing. and you really don't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it finds one, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok. [ male announcer ] now all you need is a magic carriage. citi price rewind. buy now. save later. ♪ ♪ [ male announcer ] everyone deserves the gift of all day pain relief. this season, discover aleve. all day pain relief with just two pills. something this delicious could only come from nature. now from the maker of splenda sweeteners, discover nectresse. the only 100% natural, no-calorie sweetener made from the goodness of fruit. the rich, sweet taste of sugar. nothing artificial. ♪ it's all that sweet ever needs to be. new nectresse. sweetness naturally. >>> to a holiday themed bomb ticks now where mayor bloomberg turned on the lights on the big christmas tree last night. very nice. >>> and the white house is now all decked out for the holidays. the first lady unveiled the decorations for military families yesterday. this year's theme, joy to all. here are some of the highlights. a 300-pound replica of the white house made of rye, white, and white flavored gingerbread. i don't even know what that means. white flavored? a replica of the obama's dog complete with little christmas lights in his mouth. and check out this elaborate tree full of colors, 90,000 visitors will pass through the white house this holiday season. if you read only one thing this morning, if you saw your dreams dissolve, the porsche 911, the villa in the south of france gone simply because you didn't hit the lottery, take heart. "time" magazine reports on ten big lottery winners for whom winning may have been the worst thing that ever happened to them. you will not believe piece stories. it's on our facebook page. ital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] [ male announcer ] ...forbusiness.com. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. when you give a child a toy, it has to work. ♪ make just one someone happy and when it's a toys for tots child, well, what could be more important? so this year, every hasbro toy donated to toys for tots will be powered by duracell. happy holidays. duracell with duralock. trusted everywhere. >>> there are calls for john boehner to name women to the two committee chair postses in the new congress. that's because the other 19 committee chair slots were as you can see here all filled by men. it's been a hot topic among republican women on capitol hill. >> i wish we weren't having to address that issue. i would like to have thought that we could have had women chair men, but the fact that this is the kind of the way it has turned out, we have to continue to highlight the qualified women that are in our conference. >> let's bring in michael steele and kiki mcclain. good morning to both of you. the current congress has 24 republican women, the new congress will have 19. and then all the committee chair positions as we said have gone to men. michael, the optics are not good. >> the optics stink. and you'd think given what we went through with women, about women, particularly with the gop, that this would have been raised within the leadership. >> mitt romney lost the women's vote by 11 points. >> having said that, a lot of the mind set just to give you back drop on this in the gop is we don't do sort of fill in the blank here just because we have a woman, put a woman this lays. it's very much senior based. it's very much time tenured and all of that. but there are senior members at the caucus who are female who can advance i think legitimately without question about their preparedness or readiness to do the job. this is an optic issue, but easily resolved. figure those last two spots with capable women and have the noise go away. >> with a republicans are saying is that three women were named to leadership positions in the republican conference including washington's kathy mcmorris rogers who will become the fourth highest ranking member in the house. let me lay for you what tom davis said last night on hardball. >> only really had one woman this contention and that was candace miller. and i've been through these things. they're knife fights inside. but mcmorris rogers beat a very able man for leadership. so when the caucus was allowed to speak, they selected a woman. did you do buy that argument? >> kind of like saying i have a friend who is a girl. look, good for her because she did run a real race from what i understand and good for the caucus for supporting that, but this is kind of like when you have to tell your son to say thank you as opposed to knowing to do it on their own. owe ought to know better and they ought to be proud of the women in their caucus and be willing to promote them. so the opticses stink, but they reflect what's really going on in that caucus and it will be a challenge. and you can say just name two and that will feel better and that will make it easier for michael and tom davis who are good guys to get through an interview. but it doesn't really reflect what's going on in that party and the reality is to michael's point you have a seniority issue and you're going to have a lot of obstacles and barriers to new young talent coming up and they have new young women talent and they ought to promote them. >> this is what bonnie goldstein wrote about those two positions. the only two chair than ships left to assign are the politically thankless house ethics committee chair and the administratively unrewarding hoist administration committee gavel. is she right about that, michael? >> yes. >> and do they need to do that? >> yes and yes. and this is again one of those situations where instead of leading by example, using the strength of our bench that we do have those women that kiki referenced, we didn't. now even if you do make the two appointments, you'll put them in lesser positions. if furthers the negative their difference that has continued about the gop. look, there are two realities here. one easy, one hard. the easy stuff is to do the obvious and to get engaged and put the leadership out there. the hard is having the lil to do it. actually wanting to do it. and i think we demonstrate over and over again that we just are not willing to do it. p and that has to change. >> one more thing i want to point out. after six years you're automatically gone from the chairmanship. so they made an exception in the case of paul ryan, but not the one woman who chaired a committee. >> this is just dumb. it speaks to their judgment and it speaks to what michael said, which is where their real heart is. it's funny, the ethics committee and administration committee are really important committees. but it is kind of easy to characterize it as saying they want one to be a mom and the other to be the house keeper. it's sort of speaks to the issue -- by the way, now you're going to do exactly what michael says you don't want to to. you didn't put a woman in a role just because she's a woman so you can check the box. there are qualified women who ought to have those roles based on their capacity and talent. >> thank you both very much. and you can watch this segment and in fact the rest of jansing and company on our new and improved home on the web. we are unveiling a revamped page today. bolder headlines, the latest news and best video from jansing and company and also a space for your comments. tell us what you think. >>> also making news this morning, former cia chief david petraeus now says about his affair with paula broadwell, quote, i screwed up royally. nbc news has learned that he said that in a letter to a colleague. he also said i paid the price appropriately and i south ght to the right thing at the end of the day. take a look at this heart warming picture. it's gone viral. a tourist snapped this shot of a police officer giving a new pair of boots to a barefoot homeless man on a cold night. the officer says after passing the man, he went to a nearby store and bought the boots. the picture has been viewed by almost 2 million people and it has more than 325,000 likes. wow. >>> the office holiday party is making a comeback. mandy drury is here with what's moving your money. >> after years of belt tightening, apparently close to 83% of 100 human resources managers surveyed said their companies will host an event this year, including 10% who didn't have a party last year because of the economy. admittedly these might be more modest affairs. think maybe a pot luck lunch, maybe just drinks after hours at the office. whatever. i think people are just happy to have something and get together, right? remember, though, there are a few things to do and not to do at these parties. apparently things like conversations about work, okay, but only in mod indication. leave the thigh high dress at home, think business casual. obviously don't get smashed, drunk. don't do anything like that and tell the boss what you really think of him. and sure, this is a sign of the times, take pictures, but ask before posting anythin online. >> just don't to it. mandy drury, thank you so much. >>> starbucks has a new coffee, 7 bucks a cup. this next list should not have a problem paying for $7 coffee. this is the list of forbes highest paid musicians in the last year. number five, take that, made $69 million this year. u2, $78 million. elton john, a cool $80 million. number two, roger waters, $88 million. and the highest paid musician, dr. dra, $110 million. i'm glad we got cdw and cisco to design our data center. yeah, the cisco ucsc series server, with the intel xeon processors, help us scale smoothly, like a perfect golf swing. how was it before? clunky and full of unnecessary impediments. like charles' swing. i heard that. with less chronic osteoarthritis pain. imagine living your life with less chronic low back pain. imagine you, with less pain. cymbalta can help. cymbalta is fda-approved to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta, call right away if you have high fever, confusion and stiff muscles or serious allergic skin reactions like blisters, peeling rash, hives, or mouth sores to address possible life-threatening conditions. talk about your alcohol use, liver disease and before you reduce or stop cymbaa.lt dizziness or fainting may occur upon standing. ask your doctor about cymbalta. imagine you with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. yep. the longer you stay with us, the more you save. and when you switch from another company to us, we even reward you for the time you spent there. genius. yeah, genius. you guys must have your own loyalty program, right? well, we have something. show her, tom. huh? you should see november! oh, yeah? giving you more. now that's progressive. call or click today. [ man thinking ] oh, this gas. those antacids aren't working. oh no, not that, not here! [ male announcer ] antacids don't relieve gas. gas-x is designed to relieve gas. gas-x. the gas xperts. prego?! but i've bought ragu for years. [ thinking ] wonder what other questionable choices i've made? i choose date number 2! whooo! [ sigh of relief ] [ male announcer ] choose taste. choose prego. >>> head and neck cancer patients often suffer from dry mouth and a new study reveals they may benefit from acupuncture. patients who underwent weekly acupuncture were more likely to say their symptoms improved although there was no physical increase in saliva production. >>> less than two hours from now, president obama and mitt romney will sit down together for a private lunch at the white house. and when we say private, we mean private. no other guests, no cameras allowed. though the white house is expected to release a photo afterwards. this will be the first opportunity the two have had to visit since the election. so what will they talk about? joining me now, national political rotter for the "boston globe" and contributor to the kudlow report. just to remind folks, take a listen to president obama during his first re-election press conference talking about mitt romney. >> he presented some ideas during the course of the campaign that i actually agree with. and so it would be interesting to talk to him about something like that. there may be ideas that he has with respect to jobs and growth that can help middle class families that i want to hear. >> so this lunch today, is it just common courtesy or might he have something in mind for mitt romney? >> i think it's potential that he has something in mind that he wants mitt romney to do. it's very unlikely any type of formal position either in his cabinet or otherwise. i mean, both sides are sort of projecting they don't expect a whole lot of news to actually come out of this meeting which would mean it's more of a symbolic gesture, a time for these guys to get together privately. >> well, robert, an op-ed in the "washington post" says, obama should convene a presidential commission on national health costs to be chaired by romney and filled with leaders from every part of the sector plus other relevant experts. miller says the goal of will this commission would be to reduce health care costs. mitt romney saved the olympics. he's an accomplished businessman. do you see any chance anything like this would happen? >> i would not rule it out at all. mitt romney was a businessman for both of his career, but he got into politics running for the senate and then president twice. because he really is committed to public service. his father george was the same way. a businessman who entered public service. and i think it's not surprising that romney is going to the quhous today. whenever i interviewed mitt romney, i was always struck that he never considered the fight against obama a personal one. it was about public service. >> really? it felt like it watching from the outside. >> i think the campaign was nasty, but the relations between romney and obama as gentlemen was never nasty on that level. >> so when you hear people say these guys didn't like each other, are they exaggerating? >> i do think it got somewhat personal toward the end between them. i mean, i don't think -- people describe them as somewhat similar. they're both somewhat intellectual. >> highly competitive. >> both of them. and you have this awkward situation, though, where romney lost. and he did seem a little bit bitter about that in the days after the election. so you have to sort of wonder what the discussions will be like between obama and romney when they're in a private room together. >> wouldn't you love to be a fly on the wall. >> i would love to. and one thing that really is interesting to me is that for instance in 1992, there was a nasty campaign between bill clinton and george h.w. bush and no one would have predicted that two two dedecades on they would pretty close friends working on projects together. sometimes it's still acrimonious between former competitors, but it this relationship could being akin to that clinton/bush relationship. >> so let's say he doesn't have any public role in the sense of in this administration. matt, what do you think, what does he do next? >> a lot of people are speculating sort of what he might did. it's hard to tell what mitt romney himself is thinking. right now he's enjoying kicking back. you saw photos of him pumping gas, not a generous photo by any stretch, but other photos of him riding roller coasters at disneyland. next who knows. but he is having an office and the office is in boston. so there have been speculation right after the election that he may sort of relocate for all intents and purposes to the west coast and to his house out there. so it does seem like he'll keep his ties in boston at least. >> good to see you gentlemen. thank you. >>> today's tweet of the day mixes politics and power ball. i was suggesting earlier that a patriotic lottery winner could help bring down the deficit, but apparently not by much. "it would only take the government 80 minutes to spend the power ball jackpot. ." [ ding! ] ...and spend time on the slopes. take alka-seltzer plus cold & cough... [ buzz! ] ...and spend time on the chair. for non-drowsy 6-symptom cold & flu relief. take dayquil. use nyquil d... [ ding! ] ...and get longer nighttime cough relief. use alka-seltzer plus night cold & flu... [ coughs ] [ buzz! ] [ screams ] ...and you could find yourself... honey? ...on the couch. nyquil d. 50% longer cough and stuffy nose relief. ♪ don't know what i'd do ♪ i'd have nothing to prove [ male announcer ] introducing the celebration diamond collection. zales is the diamond store. let love shine. >>> so we've been talking a lot about the fiscal cliff and of course long term entitlement reforms. so we wanted to take a deeper look what the it might mean for medicare. 50 million senior citizens get health insurance coverage through medicare and that number is growing quickly. polls show most americans don't want big changes to medicare. but if change does come, what might it look like? richard lui is here. >> medicare is a very popular program. but according to reporting from nbc's tom costello, it's also more than 13% of all federal spending. and it's growing unsustainably. one cost cutting idea is to slowly raise the age limit to receive benefits. now it's 65. this is what retirement planners need to consider. let's say mr. and mrs. brown living on any street usa both turn 65 next year. they are unlikely to be affected and still can get medicare coverage. but if we walk next door, mr. and mrs. gonzalez could see a change. they are 60 years old and under current proposals, they would wait to 65 plus several months on top of that. farther down the street, the changes could have a longer coverage gap to fill. they are a55 and could wait untl 66 or 67 or older. it could save money, but it just shifts costs to private insurance or employers in a less efficient way. >> we want to see improvements that actually lower health care costs, not simply change them, make seniors pay more for health care. >> now, one proposal could make seniors pay more simply if you make more, pay more. or what's called the means test. back to any street usa and mrs. graham. she makes less than $85,000. her monthly medicare premium is $115. her wealthier neighbors already pay up to $254 more per honesty because they make more than $58,000 a year. new changes could make them pay even more. since nearly every senior is or will use medicare, these changes could affect tens of millions of people. >> what happens if we go off the fiscal cliff? >> it comes to the white coats, the doctors. that's one thing to watch here. because the doctors, the money they get from medicare, that could go down almost 30%. the result, fitch says medicare recipients would have even lower access to doctors, hospitals, and the industry overall would also see a severe negative effect as money coming into the industry, that goes down. this is the number of medicare recipients they expect to thk by some 20 million in the next decade. >> and we heard from chris van hollen, he is against raising the age of eligibility. so lots still to be decided. but thanks for helping us with that. that will wrap up this hour of jansing and company. thomas roberts is up next. >>> good morning, everybody. the agenda next hour, mitt on the menu. mr. romney goes to washington for lunch. can president obama and mitt romney bury the hatchet for the good of the country? we'll head to the white house for a live report on the president's lunch date with his former presidential rival. plus president obama deploys his top man at the treasury to capitol hill for marathon meetings with leaders of congress. but with the blame game kicking in to high gear, is there compromise to be had ahead. plus who took home those winning tickets to that $587 million power ball jackpot. kerry sanders is hot on the trail trying to help us track down the winners. one of which could be in missouri. sometimes what we suffer from is bigger than we think ... like the flu. with aches, fever and chills- the flu's a really big deal. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. prescription tamiflu attacks the flu virus at its source. so don't wait. call your doctor right away. tamiflu is prescription medicine for treating the flu in adults and children one year and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing. have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. the flu comes on fast, so ask your doctor about tamiflu. prescription for flu. [ male announcer ] it's that time of year again. medicare open enrollment. time to compare plans and costs. you don't have to make changes. but it never hurts to see if you can find better coverage, save money, or both. and check out the preventive benefits you get after the health care law. ♪ open enrollment ends december 7th. so now's the time. visit medicare.gov or call 1-800-medicare. >>> good morning. topping the agenda, deal or no deal as geithner goes to the hill. treasury secretary tim geithner who is playing a critical role in the talks to broker a deal to put a floor under the fiscal cliff hanger will be on capitol hi
FOX Business
Nov 29, 2012 9:20am EST
reform later and ignore the debt. that's the fiscal cliff deal of the day and the market likes it and the numbers are 5, 16, 22, 23, 29, and the powerball is 6. you lost. the government won. "varney & company" is about to begin. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, . . >> . stuart: it's a modern day tea party. it's a revolt led by corporations. the wall street journal reports 173 companies announced they'll pay special dividends for shareholders before the end of the year because a big tax increase on dividends could be coming next year and many companies moving up regular dividends to save their taxpayers, to save taxpayers a lot of money. start with disney. it's raising its dividend and paying it out on december 28th. that's 1.3 billion dollars paid out in total, paid out under the current tax rate. and las vegas sands paying a special dividend, that's a one on shot. 2 and 1/4 billion total. half of that will go to sheldon adelson. cost
MSNBC
Dec 6, 2012 11:00am PST
flexibility to cut a fiscal cliff deal. the first read team is asking the question how big of a deal will we see? governor christie meets with president obama this time at the white house, and it is just one of the things we thought you should know. be sure to check out our "news nation" tumblr page. you find behind the scenes pictures, and thank you for checking it out and liking our pictures. ♪ ♪ [ male announcer ] campbell's green bean casserole. it's amazing what soup can do we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. [ man thinking ] oh, this gas. those antacids aren't working. oh no, not that, not here! [ male announcer ] antacids don't relieve gas. gas-x is designed to relieve gas. gas-x. t
MSNBC
Dec 6, 2012 2:00pm EST
something in return. but not all house republicans, of course, are on board. >> the president is not interested in real policy solutions by what he's proposed. he's interested in politics, and that's the challenge we have, getting through that. >> and let me bring in our "news nation" political panel for this thursday, michael skirmonish and chris kofinis. eugene, we have the president in northern virginia meeting with the santana family. in her tweet or e-mail to the white house under the encouragement of the white house to tell how they would be impacted by a tax increase, she says in part, we truly are a picture of the 21st century middle class family, so $4,000 means we would lose much of our hope of growing our new business. you hear the republicans talk about small business owners and entrepreneurs, and here's a face of at least one family that says they could be socked if a deal is not reached. eugene. >> that's right, tamron. this is the president continuing to put on the pressure. he's winning the public argument. this is the more favorable field of battle for him, is out in public opinion. he's out in the country. so he continues to do that. the more favorable field of battle for the republicans is inside a closed room where they still have the power of the majority of the house. so the president continues to do what's more favorable for getting the outcome he'd like to have. >> michael, i hate to bring you in. i hate to say this is how the game is played, but at this point it's about optics because both sides put the first proposals on the table. here you have this family, the face of america or so many americans talking about the punch they will feel. this at a time, michael, when there's a new poll showing 65% support higher taxes on households making over $250,000. talk strategy, and does this one impress you where the president is at this home? >> well, i'm glad you used the word optics, because that's on my mind. i think the optics favor the white house at this stage. this is a complicated subject matter. there's a lot more at stake here than just whether they raise taxes for the wealthiest of americans. that's the take-away. in the 20-second sound bite world that we live, that's the message getting through. republicans are standing in the way of taxes being increased for the wealthiest among us, and that's bad messaging for the gop. so advantage to the white house in that regard, and you're starting to see some cracks in the armor. i thought it was very significant yesterday when senator coburn expressed a willingness now to think differently on that issue. if there's momentum, tamron, i think it's on the white house side of the aisle. >> and to your point, louisiana governor bobby jindal has an op-ed, and he wrote in part, any reading the headlines over the past week indicates that republicans are fighting to protect the rich and cut benefits for seniors. it may be possible to have a worse political positioning than that, but i'm not sure how. that's a republican who certainly is trying to put his name out there after the election. he says if there's something worse going on, he can't see it. >> i think there's a marked difference between this negotiation and what took place two summers, i guess, ago between speaker boehner and the president when frankly i thought the white house did a poor job of its advocacy for its own position. this is different. it's as if they learned i lesson. they're digging in deeply this time around. they have the wind at their back because of an election result. it's a strategy. as you mentioned he's campai campaigning today. it's like the campaign didn't end. >> chris, let me bring you in. a lot of people talk about this latest interview with secretary geithner. let me play a little bit of what he had to say regarding the fiscal cliff and the threat that looms. let me play it. >> when it comes to raising taxes on the wealthy, those making more than $250,000, if republicans do not agree to that, is the administration prepared to go over the fiscal cliff? >> absolutely. there's no prospect to an agreement that doesn't involve those rates going up on the top 2% of the wealthiest. >> so is it a bluff when the obama administration says they're willing to go off the cliff if a deal is not reached on rates? >> i don't think it's a bluff. if you look at the reality of what happens, all the leverage which i -- right now clearly the white house has. they get more leverage if we go over their cliff. you can argue that would not send a good message to the country, to the world. it would prove that we are dysfunctional and cannot govern, et cetera, et cetera. in terms of dealing with the policy problem, which is you have this massive and growing debt, you have to bring in more revenues. there's multiple ways to do it, but critical ways to raise rates on the top end. it was what the election was about. republicans want to play the game where they think they get something. at the end of the day they lose worse if we go over the cliff. >> that's an interesting insight because you have alan simpson on the "today" show asked dp one side is a winner or loser off the cliff. here's what he had to say, chris. >> when you have leaders from the administration saying i think it's to the advantage of the democrats to go off the cliff or i think it's an advantage of the republicans to go off the cliff or the president to go off the cliff, that's like betting your country. there's stupidity involved in that. >> chris? >> well, listen, you know, i'm not saying it's necessarily the best policy course. i wish people could sit down and negotiate this, but at the end of the day think about it from the president's perspective. is he going to agree to a deal with the republicans that has no rate increases, that talks about closing loopholes when republicans won't specify which loopholes. you don't want to go over the cliff because it's bad for the country and sends the wrong message. at the same time, the president has to make it clear to the republicans he's willing to do it. it's the only way to force the republicans to accept something they seemingly are devoid of accepting. >> eugene, let me bring you in. i want your thoughts. we'll have this as our "news nation" gut check. do people agree with the obama administration, this threat of going off the cliff if rates aren't reached. here's what nancy pelosi had to say about geithner's remarks. let me play it. >> if there is no agreement, then the fiscal cliff has to be dealt with. i didn't see it if they decent this, we do that. i saw it as a statement of fact. it's not a threat. it's a prediction. if there's no agreement, we go over the cliff. let's hope we can have an agreement. >> what do you make of the way she put it? it's not a threat. she said, listen, these are the facts. >> nice little economy you have there. nice little economy you have there. it would be a shame it if anything happened to it. that's not a threat. look, we have to start looking at what happens if we do, in fact, go over the so-called cliff, and what happens is, you know, one thing is we take a huge bite out of the deficit. we do it in a crude may, and there would be immediate attempts to fix it and fine-tune it and take some back. some would probably get through. if you actually want to look at it from a policy standpoint, it may not be the worst possible option to just go over the cliff and then put back in the tax cuts and the spending increases or renewals that you'd like to put back in. so, you know, worst things could happen. >> well, listen, alan simpson and i go back to his sound from the "today" show, eugene. he said anyone talking about it in that way, there's stupidity involved. he didn't say, eugene, you better not because you're my buddy, but the reality is even our first read team says this notion or all of this media hype about going off the cliff from some of our colleagues is overstated. to their point a deal is in sight, that's why boehner and the president spoke yesterday. it's a matter of how big. will they separate the tax cuts from a larger needed plan later down the road? i guess what you folks in d.c. like to call "kicking the can." >> yeah. i do think it's likely there will be a deal. it's likely to be much closer to the president's terms than to the house's terms because the president has the leverage in this negotiation and the wind at his back as smirk said from the elections. so we're going through this sort of kabuki drama a little while longer. the president doesn't mind stretching it out a while longer because, as i said, he's winning. >> and especially when you have someone like this lovely family as a backdrop saying, here's what will happen to our family. we want to open a small business, and the president is there in this moment listening to their story. what is the counter for republicans? i don't know. having mitt romney or some really rich person behind them being comforted? so the optics are not equally matched. i want to talk about senator jim demint and his resignation. we knew he would leave the senate. this timing surprised people. he said in his resignation, michael, i'm leaving the senate and not living the fight. i've decided to join the heritage foundation at a time when the conservative movement needs strong leadership in the battle of ideas. dick army left his conservative group and senator demint making this transition to the think tank. is this another impact of the election? another consequence of the election? >> yeah, i'd love to know what his republican colleagues are saying behind closed doors. from my perch, you know, this is a guy who played a significant role in costing the gop about a half-dozen seats that they otherwise would have won. look at what happened in i understand. look at what happened in delaware where the mindset of senator demint seems to be one of, let's win the battle, even if we're going to lose the war. they've lost about a half-dozen wars because they put forth names that could win a primary but could never win a general election. my hunch, tamron, is politically some of the republicans are not all that sad to see him go. >> real quick to your point about the win/lose. he supported 20 candidates, 15 won primaries, 7 won general elections. in his reaction mitch mcconnell said that demint helped galvanize the american people against a big government agenda. that's at least what senator mcconnell sees there. >> yeah, right. the fact is his record was not good, and look. what i'm concerned about actually is that does this mean that the heritage foundation becomes marginiz izizaled from main street movement? heritage is the source of a lot of conservative ideas, not all of which are crazy. it's interesting to see if it remains in the conservative mainly stream or if it goes off into a fringe. >> thank you, gentlemen. greatly appreciate it. let me bring in democratic congre congresswoman from ohio. she ranks third on the house budget committee. thank you for joining us. we hope we got you at the top of the hour. >> thank you, tamron. >> what are your thoughts on the notion there's a dpeel in sight. it's a question of whether you have the bush tax cuts separate and deal with the other issues of entitlement and the fiscal issues the president wants to address as far as the debt ceiling later? >> i'm very optimistic, tamron. i think the parties are talking and there's a lot of shuffles back and forth between the white house and congress. there are republican and democratic caucuses to deal with, but i see problem. the talks haven't broken down. this isn't a middle east standoff in any way. we actually have momentum. there are specific proposals on the website by the president. there have been proposals on the republican side. they're continuing to talk. i think it's all positive. >> where do you see progress specifically? we don't know the details of the conversation yesterday, but where do you see progress? >> what i really like about the president's approach is that he's holding the line on what he campaigned on in the election. that is that if you are middle class and you earn under $250,000 a year, you shouldn't have your taxes go up come january 1st. that would cost the average family about $2,000 or a little more, depending on the number of children you have. the american people can't afford that right now with a slow growth economy. we have to keep the recovery going, and that means we have to have spending in the pockets of ordinary families. he's been holding the line on that. even the most wealthy will receive that up to the level of 250,000, but over that he's saying you have to pay your fair share. >> we noted that democrats have largely almost altogether supported the president's proposal. we have not seen that same support from republicans to speaker boehner. he has the rank and file behind him, but we have conservative voices both in the senate and house criticize the plan he put on the table. with that said, again, i guess my initial question is where do you see progress? you noted where the president stood the line and been loyal to the words he offered to the american public upon re-election, but as far as these negotiations are concerned, where is the progress? >> well, i think republican voices are being raised. even lindsey graham over in the senate and in the house, you're seeing the congressman speak out from ohio. though he's leaving, he sees a path forward to an agreement. i think we need 218 to pass a measure in the house, and i think we're on the road to do that. >> quickly, we have to talk about major changes to social security and medicare. you are against it. a new poll shows that 70% are opposed to medicaid spending cuts, 51% oppose raising medicare age. where are you you willing to compromise on entitlements when that part of the conversation is dealt with? >> first of all, social security is not a part of the debt problem. it has its own trust fund. it's well accounted for. it's actuarially sound to 2040 right now. medicare we took care of in the president's bill. in terms of medicaid, there's jostling between the states and the federal government right now, but that's a bigger question that shouldn't be dealt with by the end of the december. that's a bigger question. we've already taken $1.7 trillion in cuts, and the president is put another $800 billion up on the table. i think the democratic side has been very forthcoming in terms the cuts, cuts in a way that will not harm the recovery. zoou for your time. i greatly appreciate you joining us at this point. thank you. both secretary of state hillary clinton and defense secretary leon panetta issued more stern warnings to syria today after nbc confirmed syria has loaded chemicals for deadly gas into bombs. >> the whole world is watching. the whole world is watching very closely. >> secretary clinton, in fact, just wrapped up an important meeting in russia, syria's strongest ally. "time" magazine's jim frederick will join us live about the latest developments. we know president obama and speaker boehner spoke on the phone last night, talked a lot about that even though we don't know what they discussed. the first read team says a fiscal cliff deal is in sight. what do they think the big deal will be? join our conversation on twitter. find us at @tamronhall a and @newsnation. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. [ man thinking ] oh, this gas. those antacids aren't working. oh no, not that, not here! [ male announcer ] antacids don't relieve gas. gas-x is designed to relieve gas. gas-x. the gas xperts. now's a good time to think about your options. are you looking for a plan that really meets your needs? and your budget? as you probably know, medicare only covers about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs every year. call today to request a free decision guide. with this type of plan, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. if you're thinking about your options, call today. when you call, request your free decision guide. and find the aarp medicare supplement plan that may be right for you. let's see if we can get the same item at walmart for less? okay. fijit friends. fifteen bucks on rollback. wow! that's a savings of over 29 bucks! twenty-nine bucks!!?? and they're powered by friendship. see for yourself if you could save on the brands you want. walmart. >>> leon panetta issued another stern warning to syria's president against using chemical weapons on his own people. the syrian military has loaded precursor materials into bombs is is awaiting final orders from president assad to use it on the people. one official said if assad goes ahead, there's little the world can do. meantime, secretary of state clinton met with her counterpart from russia, syria's strongest ally. they met on the sidelines of a european security conference in ireland. the special u.n. envoy to syria was at the meeting said they agreed to seek a, quote, creative solution to the syrian crisis. jim miklaszewski joins us with the latest. let's talk about the information that nbc reported regarding the syrian military and its actions right now. >> to be clear the precursor of chemicals or at least a couple that actually when combined chemically create that deadly nerve gas. we've been told by u.s. sources those precursor chemicals have been preloaded now into aerial bombs that could be dropped from the fighter bombers onto the syrian people. as of this afternoon there is still no indication that the syrians have actually put -- attempted to put those weapons on aircraft or that there's been a final fatal order from president assad to carry out any kind of attack. so it appears right now that they are in at least the preparation mode, but they're really just one step away from actually carrying out those chemical weapons attacks. we heard secretary panetta say today that the latest intelligence on what's going on with those chemical weapons is very concerns to have specifically. in regard to the remark from one u.s. official that if president assad actually gives the order to go ahead and carry out the attack, there's very little that the outside world could do. that's in reference to a preemptive kind of attempt to prevent the strike from happening. it would be just too difficult logistically and militarily to intervene. for example, if you tried to bomb the weapon sites, you'd make matters worse because those weapons could spread that deadly gas. what they're talking about in terms of consequences is some kind of retaliatory action. what would that be? some suggest it could be regime targets. the defense ministry, the presidential palace, president assad himself. >> mick, i want to discuss this new interview with afghan president karzai in kabul. he's talking about the u.s. in very harsh words. let me play what karzai said in this new interview. >> part of the insecurities coming to us from the instructions that nato and the u.s. created in afghanistan, the private security firms, the contractors that they promoted at the cost of afghan people and the way they behaved with the afghan people and the anger that has caused in the people and the resulting insecurity. >> would you say you believe that some of these would be intentional insecurity brought by nato and the united states? >> there's a very strong perception that some of that insecurity is intentional. >> karzai aaccused the u.s. of violating the strategic partnership agreement. he said his forces would be ready to take charge when the u.s. completes its withdrawal at the end of 2014. obviously, the remarks we played are those getting a lot of attention. >> you know, the remarks or the response here has been pretty muted. i can tell you the feeling here is that his remarks that the u.s. is intentionally involved in trying to intimidate or provoke the afghan people, you know, that borders on silliness. the response pretty much is it's karzai being karzai. trying to assert himself in terms of going up against the americans and stressing that everything is about afghan sovereignty, which has been a sore point for many afghan citizens. so he's playing to his home audience. not sure it's going to cause any change in the way the u.s. strategy is being carried out or the way the u.s. officials approach karzai and the problems there in afghanistan. >> mick, thank you. let me bring in "time" magazine international editor jim frederick. we wanted you on to talk about, obviously, the situation in syria. let me play what senator john mccain just said at a news conference in the last hour. let's play it please. >> looking at it from assad's viewpoint, they see us leave iraq and return al qaeda in iraq. we've seen nothing but aannouncements of withdrawal from afghanistan. we've watched al qaeda elements able it to destroy our -- or damage severely our consulate in benghazi and kill four brave americans. the message has to be sent that the united states is engaged. that the united states is ready to be involved, and the united states is ready to do whatever is necessary to prevent an act that could endanger or take the lives of literally thousands and thousands of innocent people. >> senator mccain obviously blending in every issue he can possibly put on the list there. but in reality i think that sound clip points to the difficulty the president will have on any decision that comes out of this. he's going to have opposition or second-guessing from john mccain and his supporters, but what are the options if, in fact, syria makes this move? >> i think that option number one is to let russia try to do something. it's really the only country left that has a significant amount of influence when it comes to assad and assad in terms of political maneuvering. so clinton met with the foreign minister of russia, and that's our greatest hope right now. is russia can do something. russia is softening the position on regime change in syria, because i think that they see the syrian regime, this might be an indication we're entering the end game. their job is to ensure that assad doesn't go from even though he's killed 40,000 people, he has been a fairly rational and self-preserving actor here. bombing them with sarin gas means he tipped over into utterly irrational and the whole world has a big problem on his hands. >> this brings up the question of should more have been done earlier, and what were the options? >> it's easy for senator mccain when you're not in power saying we should do all things. the thing we should remember is regime change, libya, egypt, iraq, it very rarely goes well. >> the consequences of regime change, even when it's supported. >> right. in syria there are so many more competing factions for power, that i think a regime change in syria, we might be in for a whole different category of problems. to say that the united states should just walk in there and designate a new leader or do whatever it takes, i mean, that itself is a little naive and easy to say when you're not sitting in the chair. >> thank you very much. coming up, i talk with congressman bill pascral who wroelt a letter to make an urgent request about the alternative minimum task. he said failure to increase federal taxes for half of the people in his state. plus, treasury secretary tim geithner says the obama administration is, quote, absolutely ready to go over the cliff if republicans refuse to raise taxes on the rich. do you support that decision? it is our gut check. first, in today's money minute, here's a look at the markets. ♪ ♪ mom? dad? guys? [ engine turns over ] [ engine revs ] ♪ he'll be fine. [ male announcer ] more people are leaving bmw, mercedes and lexus for audi than ever before. take advantage of exceptional values during the season of audi event. ♪ you make me happy when skies are gray ♪ [ female announcer ] you know exactly what it takes to make them feel better. ♪ you make me happy [ female announcer ] that's why you choose children's tylenol. the same brand your mom trusted for you when you were young. ♪ how much i love you [ humming ] [ female announcer ] children's tylenol, the #1 brand of pain and fever relief recommended by pediatricians and used by moms decade after decade. [ humming ] plays a key role throughout our lives. one a day women's 50+ is a complete multivitamin designed for women's health concerns as we age. it has 7 antioxidants to support cell health. one a day 50+. >>> welcome back. people in washington are lighting up to celebrate the state's new marijuana law in effect. at midnight last night it was, and it's part of our news around the nation. speaker john boehner may have the conservative critics, but the "new york times" supports they have more support than the rank and file before, in fact, giving him flexibility to cut a fiscal cliff deal. the first read team is asking the question how big of a deal will we see? governor christie meets with president obama this time at the white house, and it is just one of the things we thought you should know. be sure to check out our "news nation" tumblr page. you find behind the scenes pictures, and thank you for checking it out and liking our pictures. ♪ ♪ [ male announcer ] campbell's green bean casserole. it's amazing what soup can do we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. [ man thinking ] oh, this gas. those antacids aren't working. oh no, not that, not here! [ male announcer ] antacids don't relieve gas. gas-x is designed to relieve gas. gas-x. the gas xperts. bp has paid overthe people of bp twenty-threeitment to the gulf. billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. >>> welcome back. with just 25 days left to avert the fiscal cliff and after yesterday's hot rhetoric on the campaign trail, our first read team says there's a light at the end of the tunnel. they write perhaps some of our media brethren should stop with the sky he is falling headlines. they say a deal is in sight. the only question is how big. today the washington post reports republican centrists and they're calling on speaker boehner. joining me to talk about it, mark murray. so the something in return, what would it be specifically, mark? >> there are two options on the table if republicans do budge on taxes. that seems to be where everything is moving. the one option is they kind of resolve the tax issue and kick the can down the road on entitlements and the debt ceiling. we have a big fight over those in the spring our summer of 2013. option 2 is the big deal, and you have everything on the table or at least the framework to do all the things. so taxes, entitlements, debt ceiling, maybe a little stimulus here or there where all sides give-and-take a little bit. that's the big deal. tamron, getting the big deal is more complicated. it is always harder to do these types of deals, but there would be legacy components for president obama and house speaker john boehner if they can get one done in the next couple of weeks. >> we know things change day to day, comparing the ton yesterday. we started the show with any and everyone saying whether they would budge or not from members of the house, the senate, and, of course, the president included, and then today you have this moment right now where the president is in northern virginia with an american family who wrote saying that they would be greatly impacted. in fact, their small business they want to start they feel would be impacted by this. there was a phone conversation last night between the president and speaker boehner. to your point about those in the media believing that the sky is falling, that maybe we should stop being chicken little that said the sky is falling? i don't know. can't keep up. >> when you bet on washington getting things done, there's always a heavy does of skepticism. we saw during the debt ceiling fight just a painful ordeal there. it is very hard to get things do done on capitol hill. it's always been that case, but there are things that are kind of moving where you look at the fact if republicans are under the understanding that somehow they have to budge on taxes, they might start asking, what can we get in return? if they actually put things like entitlement reform on the table and say, this is what we want in return, it's very possible that the obama white house ends up meeting them more than halfway on some things, and that's how you get a deal. >> mark murray, thank you very much. let me bring in new jersey congressman bill paskrell. thank you for your time. i want to get your reaction to what mark murray just reported, moving down the line it's possible the president will make a move regarding entitlement reform that might not set well with some progressives. what is your take on that being a possible development if, in fact, the deal is reached on, first of all, the bush era tax cuts? >> i think mark is on target. i think we have a short-term solution here. that is to provide the sustained tax cuts for the 98% of americans who are in the middle class, and 97% of small businesses. then make a framework, provide a framework so we can have a long-term settlement finally on tax reform. that's going to come. it's similar to what senator bradley, remember him, in new jersey did in 1986 when we reframed and reformed the tax code. i think that's necessary. that's just as important as the tax cuts for the middle class, i believe. now, if we can settle on a framework at least to get to that within this first three or four months of the next congress, i think, tamron, we have a deal going here. it's possible that we can get this done before christmas. >> but one of your concerns and you sent an open letter regarding the fact in this deal you do not want the alternative minimal tax to be forgotten here. >> absolutely. we have that problem every year. it affects more people, more middle class people. nobody even knew what the alternative minimum tax was 8, 9 years ago. now more and more americans, millions are susceptible to it. if you have to patch it for another year, i would hope to get a final solution to that situation very, very shortly because we cannot have that anxiety hanging over folks as they go to pay their taxes in february and march of next year. >> absolutely. another issue, i guess, that is seen as a complication but one that must be addressed the president says, the debt ceiling. i want to play what senator mcconnell has said regarding the president and the portion of his proposal that included the debt ceiling. let's play it. >> the last person who should have limitless borrowing power. look, the only way we cut spending around here is by using the debate over the debt limit to do it. >> i bet you don't agree with that? >> i don't agree with that. we've seen what happens. we've been brought to the brink and don't want to go back to 1995 when the folks walked out and government was shut down. what did we accomplish? i think even mr. gingrich would want that one back of a few years ago. look, there's no question in my mind we have to look at the entitlements in order to finish this deal next year. the fact is that social security doesn't add one penny to the deficit or the debt. let's get the facts straight on this. we've been looking at these entitlements, scrutinizing them. we've had bipartisan changes to social security to make it sustainable. we can do that again. don't blame social security and medicare for our problems. i would say a major part of the problem is health care expenses, and i think the affordable health care bill attacked that issue particularly. if we don't lower health care costs, we are not going to get the budget in balance regardless of what we do. >> we have below you daishg you can't see it. a new poll was taken. a majority didn't want to see cuts in medicaid and didn't want the eligibility age increase for medicare. >> you're absolutely right. you put more burden on the states. right now the states are struggling to keep their head above water as it is. if you put that burden on the states, then they are going to move accordingly to the towns and their taxpayers in that particular state. in my state of new jersey, we pay an exorbitant amount of federal taxes. we're a donor state and we provide the necessary dollars so we spread it out according to the wealth. this is important. this is a critical concept in our capitalistic economy. the more you make, the more you pay in your share. tax reform is a real drag-out battle next year, because we deal with a subject laid on the side for all years while we go through these budget emergencies as you would say. we need to attack that, attack it head on. we need to, i believe, move into the era of taxing wealth more than income. i think that's very important for the american people so we come up with a fair tax code. don't forget, most of the tax code is written by folks that are millionaires and billionaires who have lawyers. you don't have a lawyer and i don't have a lawyer. to do these things to make it fair. we are behind the box every time we start to have this debate and discussion. we want fairness in this system. we want everybody to pay what they're supposed to pay. there's no question about that. i don't think that's been happening, tamron. when you talk about tax reform, put it all on the table. >> it sounds like you're telling us to strap in because it's quite a battle now and in the new year. thank you for your time. >> nice talking to you. >> thank you. coming up a grammy battle. did you hear this? between the first lady and the former president. it is just one thing we thought you should know. a little grammy news mixed with politics. plus a face-off in court between two of the world's top smartphone makers. apple wants some samsung products banned. they don't want them sold in the u.s. how this could impact the tablet market and smartphone market. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. by december 22nd music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. is bigger than we think ... sometimelike the flu.fer from with aches, fever and chills- the flu's a really big deal. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. prescription tamiflu attacks the flu virus at its source. so don't wait. call your doctor right away. tamiflu is prescription medicine for treating the flu in adults and children one year and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing. have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. the flu comes on fast, so ask your doctor about tamiflu. prescription for flu. "are you a cool mom?" i'm gonna find out. [ female announcer ] swiffer wetjet's pads are better than ever. now they have the scrubbing power of mr. clean magic eraser so you don't have to get down on your hands and knees to scrub away tough, dried-on stains. hey, do you guys think i'm "momtacular" or "momtrocious"? ♪ [ female announcer ] swiffer. now with the scrubbing power of mr. clean magic eraser. without freshly-made pasta. you could also cut corners by making it without 100% real cheddar cheese. but then...it wouldn't be stouffer's mac & cheese. just one of over 70 satisfying recipes for one from stouffer's. with his wife, danielle, almost every weekend. derrell hasn't been able to visit his mom back east in a long time. [ shirley ] things are sometimes a little tight around the house. i wasn't able to go to the wedding. [ emily jo ] since derrell couldn't get home, we decided to bring home to him and then just gave him a little bit of help finding his way. ♪ [ laughs ] [ applause ] i love you. i love you, too. >>> the world's top two mobile phone makers will reignite a patent battle today and it could affect which phones you can use. lawyers for apple and samsung return to court in less than two hours. at the heart of the hour, samsung wants to overturn a verdict that they copied apple's technology. now apple wants to keep samsung devices like smartphones and tablets out of american store. this all basically started in the summer. >> the trial end theed in the summer. they said you owe apple a billion dollars. they're going back and aapple is saying they want more money, and samsung says they want to pay them less or nothing at all. apple, of course, has their secret weapon, this list of products they want samsung to stop sell negotiate u.s. >> to get them to stop selling these products is equivalent to hitting them where it hurts. the billion dollar settlent is a big deal but forcing products off shelves would be a problem. >> that's how you stick it to the competition. samsung is probably the biggest smartphone maker next to apple, so this is the real competition. >> sticking it to samsung is sticking it to people who own these products? >> light of the products that apple wants to ban are older products not for sale anymore. samsung is smart with their latest generation. they make them just different enough they would not be covered by this. >> there's other news regarding apple, and they will start to make macs in the u.s. again. >> they used to here in the u.s. over the years that moved overseas. some may come back with the i-macs and desktops. that's a win all around. >> there was interesting news regarding the markets and apple yesterday as well. are they -- i guess they're on solid ground as we've seen before? >> apple stock is all over the place. some of it is people predicting the sales for the fourth quarter and a lot of court cases. a lot is people are unsure about the economy these days and the post-steve jobs era. >> even around christmastime when the products are popular as gifts. >> you think retail sales would translate well because there's so many other issues there besides how much they sell in the store. >> it's interesting. we'll see what happens with this case and if it has an impact of consumers that own these products. thank you very much. >>> marijuana is now legal under washington state law. that tops our look at stories around the "news nation." take a look. that's how they celebrated in washington state. the news came down after midnight as you know at the seattle center. it allows people to possess up to an ounce of pot, but they cannot smoke it in public. that looks like public to me. the police department will issue verbal warnings to violators. that explains the public video. lawyers for software company founder john mcafee sought guatemala denied his asylum. they detained him for entering the country illegally. he's wanted for questioning in connection with the murder of his neighbor. he denies any involvement and will likely be deported. the duchess of cambridge is resting at home this morning. she left the hospital where she was treated for severe morning sickness. today prince charles made his first public comments since the news broke that she's going to have a baby. >> i'm thrilled. very nice for grandfatherhood in my old age, so that's splendid. i'm very glad my daughter-in-law is getting better thank goodness. >> so the hospitalization prompted the palace to aannounce the pregnancy earlier than they wanted to. today's "news nation" gut check is up next. we're talking about treasury secretary tim geithner's comments regarding the possibility of going over that fiscal cliff. >> if republicans do not agree to that, is the administration prepared to go over the fiscal cliff? >> absolutely. >> so do you agree with the obama administration's decision to go over the cliff if tax rates on the wealthy don't increase? you can join the "news nation" on facebook. we're at facebook.com/newsnation. ♪ if it wasn't for you ♪ don't know what i'd do ♪ i'd have nothing to prove ♪ i'd have nothing to lose [ male announcer ] zales is the diamond store. take an extra 10 percent off storewide, now through sunday. this reduced sodium soup says it may help lower cholesterol, how does it work? you just have to eat it as part of your heart healthy diet. step 1. eat the soup. all those veggies and beans, that's what may help lower your cholesterol and -- well that's easy [ male announcer ] progresso. you gotta taste this soup. that's what may help lower your cholesterol and -- well that's easy restore revive rejuvenate rebuild rebuild rebuild >>> there's so much going on today. new jersey governor chris christie met with president obama this morning to request federal aid to victims of superstorm sandy. the president is expected to ask congress for about $50 billion in emergency assistance. christie has said new jersey alone will spend almost $37 billion on rebuilding. michelle obama is competing with bill clinton for a grammy for best spoken word album. the first lady red the audio version of "american grown," the story of the white house garden. the former president narrated his book "back to work." those are a couple of things we thought you should knowment time for the news narc gut check. treasury he secretary tim geithner told cnbc yesterday that the obama administration is absolutely ready to go over the cliff if republicans refuse to raise tax rates on the wealthiest americans. take a look. >> when it comes to raising taxes on the wealthy, if republicans do not agree to that is the administration prepared to go over the fiscal cliff? >> absolutely. there's no prospect to an agreement that doesn't involve the rates going up on the top 2% of the wealthy. >> orrin hatch called that one of the most stunning and irresponsible statements he's heard in some time. what does your gut tell you? do you support the obama administration's decision to go over the cliff? that does it for this edition of "news nation." thanks for hanging with us. i'm tamron hall. we'll see you tomorrow. "the cycle" is up next. o think medicare and... social security are just numbers in a budget. well, we worked hard for those benefits. we earned them. and if washington tries to cram decisions about the future... of these programs into a last minute budget deal... we'll all pay the price. aarp is fighting to protect seniors with responsible... solutions that strengthen medicare and... social security for generations to come. we can do better than a last minute deal... that would hurt all of us. and with my bankamericard cash rewards credit card, i love 'em even more. i earn 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. that's 1% back on... [ toy robot sounds ] 2% on pumpkin pie. and apple. 3% back on 4 trips to the airport. it's as easy as... -[ man ] 1... -[ woman ] 2... [ woman ] 3. [ male announcer ] the bankamericard cash rewards card. apply online or at a bank of america near you. >>> 26 days until the fiscal free fall. we're hard at work today. we have lawrence o'donnell, and he gets the first word trait ahead. >> see what she did there? he normally gets the last word. the big news from the senate today, they saved us from the slope. there's a resignation to talk p about. >> guess who made this year's list of the world's most powerful people? here's a hint. toure just missed the cut. >> here's why i take issue with the cut. picture people, toure2016.com. >> time's up. it's thursday, december 6th, and you're in "the cycle." >>> and so it
PBS
Dec 5, 2012 12:00am PST
with president obama today about what they need to see in a fiscal cliff deal. we talk with delaware governor jack markell. >> susie: i'm susie gharib. a coalition of the nation's top c.e.o.s is feeling pessimistic about getting a fiscal cliff deal.
MSNBC
Nov 30, 2012 9:00am PST
>>> at long last, feigned washington outrage has been replaced by actual washington outrage. it's friday, november 30th. this is "now." >>> joining me today, host of the aupon muss msnbc show melissa harris- perry is here. could it be that democrats are a little caught up in powerball madness? this is the reaction of a maryland man reportedly watching each lottery number fall into place and realize he may get everything he's ever wanted. yesterday treasury secretary timothy geithner went to capitol hill with a proposal that included everything the white house wanted. it has two stages. phase one, to be agreed on before the new year would raise nearly $1.6 trillion in new tax revenue including raising the top two marginal rates, ask for $50 billion in stimulus spending and a permanent end of congress' ability to prevent debt ceiling increases and nonspecified cuts to entitlement spending. phase two more friendly to republican interests calling for $400 billion in unspecified cuts to entitlement programs with no guarantees. the chances of this plan making it through congress may be lower than the chance of winning the botterball lottery jackpot. surprising no one, republicans acted with vague horror. mcmcconnell said he burst into laughter in front of geithner. an aide told nbc news it is a complete break from reality and orrin hatch told buzz feed, i don't think anybody will agree to that and john cornyn added, i don't think he's serious. the white house aims to negotiate down from the opening salvo to a happy immediate yum. it is a bold offier or "the huffington post" wrote -- who is this president and what have you done with barack obama? speaking of who, president obama is about to make another power play returning to the campaign trail, about to speak to factory workers pennsylvania to sell his positions on taxes and a fiscal cliff deal. >> i also got a chance to meet some of the folks who have been working around the clock to keep up with the christmas rush and that's a good thing. these guys are santa's extra elves here. they manufacture almost 3,000 connect pieces every minute and every box that ends up on store shelves in 30 countries is stamped "made in america." that's something to be proud of [ applause ] by the way, i hope the camera folks had a chance to take a look at some of the kinex including that flag made out of kinex. joe biden was in costco, he wanted to buy some of this stuff but i told him he had too much work to do. i wasn't going to have him building roller coasters all day long. now, of course, santa delivers everywhere. i've been keeping my own naughty and nice list for washington. so you should keep your eye on who gets some kinex this year. there will be some members of congress who get them and some who don't. [ applause ] look, this is a wonderful time of year. it's been a few weeks since a long election finally came to an end. and, obviously, i couldn't be more honored to be back in the white house. but i'm already missing the time that i spent on the campaign visiting towns like this and talking to folks like you. >> we love you. >> i love you back. that's why i miss it. [ applause ] >> one of the benefits of traveling and getting out of the white house is it gives you a chance to have a conversation with the american people about what kind of country do we want to be and what kind of country do we want to leave to our kids? i believe america only thrives when we have a strong and growing middle class and i believe we're at our best when everybody who works hard has a chance to get ahead. that's what i believe. and i know that's what the founders of this company believe as well. we were talking about these guys' dad who i understand just passed away at the age of 101, which is -- so these guys have good genes, in addition to inventive minds. and the story of generations starting businesses, hiring folks, making sure that if you work hard you can get ahead, that's what america is all about. that's at the heart of the plan i have been talking about all year. i want to reward manufacturers like this one and small businesses that create jobs here in the united states. not overseas. [ applause ] and by the way this is one of the few companies in the toy industry that have aggressive moved jobs back here. that's a great story to tell. [ applause ] because we've got the best workers in the world and the most productive workers in the world and so we need champions for american industry creating jobs here in the united states. i want to give more americans the chance to earn the skills that businesses are looking for right now and give our childrens the kind of education that they need in the 21st century. i want america to lead the world in research and technology and clean energy. i want to put people back to work rebuilding our roads and bridges and our schools. and i want to do all this while bringing down our deficits in a balanced and responsible way. [ applause ] on this last point, you probably heard a lot of talk in washington and in the media about the deedlines that we're facing on jobs and taxes and investment. this is not some run-of-the-mill debate. this isn't about which political party can come out on top in negotiations. we've got important decisions to make that are going to have a real impact on businesses and families all across the country. our long-term goal is to get our long-term deficit under control in a way that is balanced and is fair and that would be good for businesses, for our economy, for future generations. and i believe both parties can and will work together in the coming weeks to get that done. we know how that gets done. we're going to have to raise a little more revenue, we've got to cut out spending we don't need, building on the trillion dollars of spending cuts we've already made, and if we combine those two things, we can create a path where america's paying its bills while still being able to make investments in the things we need to grow like education and infrastructure. we know how to do that. but, you know, in washington, nothing is easy so there's going to be some prolonged negotiations. and all of us will have to get out of our comfort zones to make that happen. i'm willing to do that. i'm hoping enough members of congress in both parties are willing to do that as well. we can solve these problems. but where the clock is really ticking right now, is on middle-class taxes. at the end of the year, middle class taxes that are currently in place are set to expire. middle class tax cuts that are currently in place are set to expire. there are two things that can happen. if congress does nothing every family in america will see their income taxes automatically go up on january 1st. every family, everybody here, you will see your taxes go up on january 1st. i mean, i'm assuming that doesn't sound too good to you. that's sort of like the lump of coal you get for christmas. that's a scrooge christmas. a typical middle-class family of four would see their income taxes go up by $2200. for a typical family. more for some folks. that's money a lot of families just can't afford to lose. that's less money to buy gas, less money to buy groceries, in some cases it means tougher choices between paying the rent and saving for college. it means less money to buy more kinex. just the other day, economists said that if income taxes go up on the middle class, people will spend nearly $200 billion less in stores and on-line. and when folks are buying fewer toys or clothes or cars, it's not good for our businesses, economy, it's not good for our employment. so that's one path. congress does nothing, we don't deal with this looming tax hike on middle-class families and starting in january, everybody gets hit with this big tax hike and businesses suddenly see fewer customers, less demand, the economy which we've been fighting for four years to get out of this incredible economic crisis we have, it starts stalling again. that's one path. the good news is there is a seconding on. right now congress can pass a law that would prevent a tax hike on the first $250,000 of everybody's income. everybody. that means 98% of americans, 97% of small businesses, wouldn't see their income taxes go up by a single dime. because 98% of americans make $250,000 a year or less. 97% of small businesses make $250,000 a year or lessp. if you say income taxes don't go up for any income above $250,000, the vast majority of americans, they don't see a tax hike. but here's the thing. even the top 2%, even folks who make more than $250,000, they'd still keep their tax cut on the first $250,000 of income. it would still be better off for them too for us to go ahead and get that done. families would have a sense of security going into the new year. companies like this, would know what to expect in terms of planning for next year and the year after. that means people's jobs would be secure. the sooner congress gets this done, the sooner our economy will get a boost. and it will then give us in washington more time to work together on that long-range plan to bring down deficits in a balanced way. tax reform, working on entitlements and asking the wealthiest americans to pay more to keep investing in things like education and research to make us strong. so those are the choices that we have. and understand this was a central question in the election. maybe the central question in the election. you remember. we talked about this a lot. it wasn't like this should come as a surprise to anybody. we had debates about it. there were a lot of tv commercials about it. and at the end of the day, a clear majority of americans, democrats, republicans, independents, they agreed with a balanced approach to deficit reduction and making sure middle-class taxes don't go up. folks agreed to that. now the good news is we're starting to see a few republicans coming around to it too. i'm talking about republicans in congress. so the reason i'm here is because i want the american people to urge congress soon, in the next week, the next two weeks, to begin the work we have by doing what we all agree on -- both parties agree that we should extend the middle-class tax cuts. we have disagreements about the high--end tax cuts, republicans don't want to raise taxes on folks like me, i think i can pay a little more to make sure kids can go to college and we can build roads and invest in nih to find cures for alzheimer's and that's a disagreement we will have and sort out, but we already all agree we say on making sure middle class taxes don't go up. let's get that done. let's take the fear out for the vast majority of american families so they don't have to worry about $2,000 coming out of their pockets starting next year. the senate has passed a bill to keep income taxes from going up on middle-class families. that's passed the senate. your members of congress, like allison and shaka, other democrats in the house, they're ready to go. they're ready to vote on that same thing. and if we can just get a few house republicans on board we can pass the bill in the house, it will land on my desk and i am ready. i've got a bunch of pens ready to sign this bill. i'm ready to sign it. [ applause ] i'm ready to sign it. [ applause ] there are no shortage of pens in the white house. and i carry one around for an emergency just in case. just waiting for the chance to use it to sign this bill to make sure people's taxes don't go up. but -- well, i -- don't thank me yet because i haven't signed it. i need -- i need some help from congress. so the key is, though, that the american people have to be involved. you know, it's not going to be enough for me to just dos this on my own. i'm hopeful both sides will come together and do the right thing. we all know you can't take anything for granted when it comes to washington. let's face it. and that's why i'm going to be asking for all of you to make your voices heard over the next few days and the next couple of weeks. i need you to remind members of congress, democrats and republicans, not get bogged down in a bunch of partisan bickering but let's focus on people who sent us to washington and make sure that we're doing the right thing by them. so i want you to call, i want you to send an e-mail, post on their facebook wall, if you tweet, then use a hash tag we're calling #my2k, not y 2 k, #my2k. because it's about your 2k in your pocket. we're trying to burn that into people's minds here. [ applause ] in the meantime i'm doing my part. i'm meeting with every constituency group out there. we're talking to ceos, we're talking to labor groups, we're talking to civic groups, i'm talking to, you know, media outlets, just explaining to the american people this is not that complicated. let's make sure that middle class taxes don't go up, get that done in the next couple weeks. let's also work together on a fair and balanced, responsible plan so that we are paying our bills. we're not spending on things we don't need, but we are still spending on the things that makes us grow. that's the kind of fair, balanced, responsible plan that i talked about during the campaign and that's what the majority of americans believe in. so, i'm hopeful, but i'm going to need folks like you, the people here in hatfield and pennsylvania and across the country, to get this done. a lot is riding on this debate. this is too important to our economy, it's too important to our families, to not get it done and it's not acceptable to me and i don't think it's acceptable to you, for just a handful of republicans in congress to hold middle-class tax cuts hostage simply because they don't want tax rates on upper income folks to go up. all right. that doesn't make sense. [ applause ] if your voices are here, we can help businesses like this one, sell a whole bunch of kinex. [ applause ] let's give families all across america the kind of security and certainty that they deserve during the holiday season. let's keep our economy on the right track. let's stand up for the american belief that each of us have our own dreams and aspirations, but we're also in this together. we can work together in a responsible way that we're one people and one nation, that's what this country is about, that's what all of you deserve, what i'm fighting for every single day and i will keep fighting for as long as i have the privilege of being your president. thank you very much everybody. god bless you, god bless america. >> that is president obama speaking at the manufacturing facility in hatfield, pennsylvania. melissa harris-perry i think sasha and malia will get kinex roller coasters. could the president push those more than the tax cuts. i'm likening this to when dillon went electric. we are seeing obama play a hard ball that the democrats have not played with this current sort of republican party and it's most modern manifestation. what do you make of the messaging now, the fact he is going hard with one message only, which is about middle class tax cuts, he has dispatched his ambassadors to the hill with a plan that republicans found shall we say off putting? >> look, the fact is that nothing structurally changed in terms of the amount of power that this president has to cope with this congress except that he won re-election, right? but it's the same players, everybody's in the same seat, it's the same lame duck congress. there's no inside bargaining that is itself essentially different than it was a few weeks ago. the one thing he has and keep claiming is the public mandate around the election and go back and make sure the narrative is written that the people voted for him for re-election for this purpose and the only way to do that is to make the appeal directly to the american people. >> and he is underscoring his reasonableness. i feel like this is a reasonableness towards having romney to the white house, meeting with ceos who donated to romney going out there as michael crowley pointed out, we were chit chatting over the president, full disclosure, the president using a fair and balanced to describe his approach which is a republican line. >> never heard the phrase. >> but, you know, the question is, does that at some point backfire for him? the republicans seem to be pushing back saying this is extreme, insane, we can't believe this is -- >> i think the best contrast for what's happening is the stimulus bill that happened in 2009. it was the first thing he did after being elected in 2008 and did a dramatically different than what he did now. he structured the bill with the tax cuts in it and told republicans okay, come on board, you have about a third of the tax cuts in the package, that's what you wanted and he didn't give them an incentive to buy into the enterprise. he didn't allow them to claim ownership of the change to the legislation and did an inside game what melissa was talking about. he went to the senate and tried to get republicans to come on board. zero luck in the house, some luck in the senate. now he's going out and trying to put the public pressure on congress to move and allowing them an option to buy in. he starts with this legislative proposal, very much a list of priorities which he's going to move off of. no one on this set well think he's going to stand there. >> yeah. he almost should have just asked for his face to be carved on to mount rushmore. >> that's done already. >> but the idea here is that at some point, the republicans will say to their base, we got this, we got that. we preserved the estate tax, the tax on -- the low tax rates on dividends. look at the things we got off this proposal. you should back this. >> do you think he's even giving them cover on this because it's so extreme? >> i think he wants boehner to go back to his caucus and say this is where the president started. look at the hardball negotiating i did to get the president down from $1.6 trillion on tax hikes to $1 trillion on tax hikes. i saved $600 billion in tax hikes and that's probably the most effective if not the only way he can negotiate this bill. >> how do the republicans -- what is their next move. chuck schumer saying if house republicans consider the president's budget a new offer we await their counteroffer. the ball is in their court to state on what they would do on entitlements and taxes. they have given no specifics so far. >> that's a tough question for them. by the way, you said this reminds you of dillon going electric. i think of the scene in the god father michael corleoneny, my offer is nothing, not even the fee for the contract which i expect you to pay for the pocket. michael was prepared to follow through on that demand. sam is right on the president's flexibility here. republicans more than democrats have to figure out what they're willing to swallow and they have more of a problem of their unity and messaging. some senior and some rank and file members coming out saying, you know, we should just basically get what we can on the tax cuts and extend the middle-class tax cuts and live to fight another day on the rest of it. and they also have to figure out what exactly is their message on medicare right now. >> yeah. >> you know, the romney campaign has been the remnants or the echos or what's left of the romney campaign staff is boasting that they sort of won the debate on medicare or fought the president to a draw, but because they attacked cuts to medicare in obama care, i don't think that romney ever really sold to the public significant cuts, significant changes to the medicare program. so republicans in the abstract want this. i feel like they haven't spelled out the painful cuts they're putting on the table and part of what obama is trying to do is force them to do that. >> yes. because he himself has not made any mention of it and, you know, david gregory this morning on "morning joe" saying it's going to be painful for both sides. the president trying to outsource that, pardon the use of a loaded term, to the gop, joy. >> nobody wants to talk about what they want to cut. that's the thing in washington. why you don't see the budget shrink. talking about cuts means school lunches or cut medicare. when romney andline talked about cutting medicare they had this carve out for people over 55. they said don't worry, you won't have to feel any pain. that's not even on the table. they lost with that proposition and republicans are saying look we've got to go back and admit to our wealthy donors we lost on the issue of upper income tax cuts they don't also want to own medicare cuts. everybody is right, the president's position, opposite of what he did before. let me give you everything you could vote for and let the public watch you say no. that was the way their strategy worked before the election. we put this grand bargain on the table, you should be able to support this. a lot used to be your ideas. let the public see you say no. it's the reverse where he's saying i'm not bargaining with you anymore. here's nothing. >> nothing. >> the corleone tactic. >> it would help republican in the sense once they bargain to something that is $1 trillion in tax cuts at least they can say they got something. >> we have to take a break. coming up we are expecting to hear john boehner's response to the president later this hour. we'll bring the speaker's remarks just ahead. time for the your business en e entrepreneur of the week. christine wants you to shop small. owner of wonder works, a charleston, south carolina, based toy store believes in cooperation instead of competition. she has a section dedicated to locally made products to make sure her customers' dollars stay local. watch your business sunday morning at 7:30 on msnbc. music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. >>> vice president joe biden went to costco yesterday. the wholesale super store, if you want mayonnaise it comes in a gallon-sized tub. biden did not opt for the mayo but in between snagging taste tests he picked up some fire logs, a watch, and a large apple pie. could joe biden be stocking own provisions and supplies for a month-long fiscal cliff fight. >> i'll tell you what i'll predict. the emergence of one of our favorite characters in this drama, joe biden. >> so -- >> now he has his costco trip out of the way, good relationships with boehner, good relationship the with mcconnell. >> the president's second? command may hold sway over another republican who played a role in the debt ceiling negotiation, eric cantor who is better versed on the details of tax issues than most members of congress remains relatively tight with vice president joe biden. as the clock ticks down to the fiscal cliff, might lieutenant biden help avert disaster? sam, you talked to republican on the hill and there's a lot of back and forth about how good of a negotiator the president and his emissaries are. i've been wondering where joe biden is on this, given his experience on the hill and whether he might be a more effective ambassador in this back and forth that we are having. >> yeah. i think so. keep in mind, he and eric cantor had lengthy conversations when we were doing this in a different incarnation many months ago and so, you know, the framework was there between these two guys, not just that, between the respective staffs. the problem, if there was one with respect to biden, at least as i think, is that the -- if you do need an emissary on the hill for democrats, it's probably going to be with the house democratic caucus. by that i mean john boehner will at some point have to decide if he can get something done with all of his caucus or part of his caucus or house democrats. at that point you need nancy pelosi to get some of those liberal members to basically stomach a deal that a lot of progressives probably won't end up likes. >> can't nancy pelosi always get her troops in line? that's the thing about nancy pelosi. we talk about who gets things done on the hill. nancy pelosi gets her troops to fall in line. >> i think there's a little bit of a question here about what kind of hill we're imagining and what we think negotiations are. and there's a version of this sort of joe biden showing up that is the lbj master of the senate version of how things get done in washington and the idea that it has to do with relationships and with closed doors and understandings of, you know, these -- and it's not clear to me that our contemporary manifestations of american politics look like that. part of -- part of my concern is i think we have to keep thinking about the fact that everyone is already thinking towards the next election cycle. republicans know that they are benefited from a smaller electorate in mid term elections and that they are highly likely to not be as punished at the ballot box as they might otherwise be, even if they hold out. and joe biden is running for president. and that's -- that's true, right? >> why else would he be buying a watch and apple pie and fire logs? >> that's what happens when vice presidents are in the second term of an administration. and so i think we just have to be careful about an assumption this is primarily about washington hill relationships -- >> but there tends to be the supreme focus on the outside personalities and the power of the individual when, in fact, a lot of this stuff is settled by anonymous staffers who you and i have never heard of. >> people that have no face -- >> what's ironic. everyone is getting mad at -- republicans are getting mad at obama for going to pennsylvania. obama has no real role to play in these negotiations at this point -- >> the a nall sis you read, it comes down to john boehner and president obama. i will reed an excerpt from pegeny noonan in the "wall street journal" would disagree with melissa this is not the old-school politic s yore. beggy writes -- when fire logs burned without fire starters and apple pies were baked in everybody's home. >> not sold in costco. >> if only everything could be like ronald reagan. >> and tip o'neill. >> the thing is, and i think it is true that -- i know peggy noonan likes the grand er and everything grand, but the senate isn't so relevant. this being a budget and tax bill they can do reconciliation. this is a house problem. the difference is that tip o'neill actually had influence with his caucus. john boehner has precious influence with the part of his caucus the most recalcitrant on these issues. in the current lame duck congress john boehner still has the same problem, resistant people who will not go along with a deal so the question is, whether or not he can deliver even the 20 or 25 votes he needs if pelosi did what she always does and delivers her caucus and how much boehner can stomach of this being a primarily democratic deal that he has no shaping and, you know -- >> and isn't that -- i mean we talked earlier in the week about paul ryan being deputized being part of these debates, we haven't heard from him yet, but michael he has not made an appearance yet so far. we know cantor has sort of been on the sidelines too but ryan sort of -- this sort of statement that he was going to be the person, perhaps, as you point out, joy, to sign off for the most restive parts of the caucus and give his messi inble a deal. >> i don't know how to explain that, although i think the white house, i'm sure, will plausibly argue ryan was part of a ticket just repudiated and he is at the low ebb of his credibility. a separate argument, somewhat contradicts that one, romney's campaign in the end was not so much about the ryan plan. you know, "the wall street journal" and sort of movement conservatives were thrilled when romney chose paul ryan and said we're going to have an election an the big issues, entitlement reforms, policy wonk's dream and that was not the romney campaign. romney did everything he could to water down his relationship with the ryan plan. and so it was -- it took a back seat. i just don't know that ryan is at a high eb of his influence and authority and one of the stronger cards that the republican party can play. one last point on the peg began noonan/ronald reagan stuff, politics has changed. the echo chamber of partisan media and pressures coming from twitter and blogs, and there's so much more information about what's happening on the hill and every negotiating faint is met with this enormous backlash. it's just not -- it doesn't work the way it used to and i don't think it is going to again. >> it ain't what it used to be. grab your apple pie at costco. i would grab -- i would grab -- i would note that i think paul ryan may be the only person in america who became a romneyest. apparently as pegeny noonan said, romney left no footprints in the sand. >> oh. >> coming up, the ten letter word that can grind washington to a halt, but can capitol hill clean up the dirty mess that is the filibuster. we will ask our very own chris hayes when he joins the panel just ahead. [ male announcer ] in blind taste tests, even ragu users chose prego. prego?! but i've bought ragu for years. [ thinking ] wonder what other questionable choices i've made? i choose date number 2! whooo! [ sigh of relief ] [ male announcer ] choose taste. choose prego. gives you a low $18.50 monthly plan premium... and select generic hypertension drugs available for only a penny... so you can focus on what really matters. call humana at 1-800-808-4003. so you can focus on what really matters. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. >>> senators often throw out the filibuster threat on capitol hill but we vice president actual -- haven't between one in action and the rule cannen confusing. >> the chairman will gavel them off if he stops talking or sits. >> excuse me? >> what are you doing? >> i didn't know if i'm supposed to -- >> we usually don't raise our hands. >> it's not the worst idea in the world. >> the senator is allowed to yield for a question without yielding the floor. >> what do you mean. >> he's allowed to yield for a question without yielding the floor. >> i was in the house. i know nothing about senate rules. >> will lawmakers yield for filibuster reform? we will ask chris hayes next in "up now." want to try to crack it? yeah, that's the way to do it! now we need a little bit more... [ male announcer ] at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the difference that quality time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other health professionals who helped us achieve the highest average star rating among national medicare companies... and become the first and only national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in the quality of care and service we're able to provide... which means better health outcomes... and more quality time to share with the ones who matter most. i love you, grandma! [ male announcer ] humana. ♪ >>> wild horses aren't going to drag me off those. these people have heard everything i've got to say. >> the world's greatest deliberative body has been anything but great of late in large part due to the minority's increasing use of the word filibuster to solve legislation. in a report detailing filibuster abuse, they calculate the current senate passed a record low 2.89% of hits bills, evidence of a rapidly declining long-term trend. in an effort to reverse it the top democrat harry reid is trying to place some limits on its use drawing protests from republicans. one is to reinstate the talking filibuster, the principle if you want to filibuster you have to stand on the floor for hours to make your case. reid's threat to uses the so-called nuclear option to achieve this prompted a spat about rules on the senate floor. >> what the majority leader is saying he will break the rules in the senate to change the rules of the senate. >> no. we're not going to break the rules to change the rules. we're going to follow the rules to make a couple of minor changes to make this place more efficient. >> joining me now to discuss is msnbc's chris hayes, host of "up" for a little segment we call -- >> "up now". >> took us a while to come up with that. >> brains. >> i will read what's on my card. i can't paraphrase this. filibuster, a tactic used to thwart the will of the majority or last safeguard for tyranny for the poor downtrodden minority. >> the former. here's my take. evolution was accidental, historically, actually kind of an oversight procedurally, second of all, if you go back and read federalist papers, the proceedings of the constitutional convention, they thought a lot about what thresholds you should have for which kinds of votes. so they didn't just say majority for everything. you have to get a two-thirds majority to override a veto, treatiesratified. it wasn't like this didn't occur to them. they never intended for the body which is already anti-democratic. in all sorts of different ways, to be a fundamentally super majority body and the evolution towards it being a super majority body i think has really genuinely screwed up the equilibrium of our system. >> if you look at thchart from e brennan center from 1947 to today, the number of closure motions filed is shocking. i'm -- there it is. look at that. we talk about dysfunction in congress. it's not just because of sort of everybody in their partisan corners. there are procedural rules used to block anything from getting done. >> one of the things that happens here, right, there's a difference between what the rules say and norms in an institution are. norms are like things that just aren't done. what's happened is a gap has opened between the two. there are things you can do according to the rules like, you know, put holds on every nomination that comes across secretly or filibuster every single motion to recommit. there are things you can do according to the rules that violate these norms. once the norms get violated. that becomes woven into the institution and then everyone's just violating the norms and then you get a broken institution. >> sam, we talk about things broken in our democratic process. some would argue redistricting is a big problem, but unfortunately with this and something like filibuster reform whoever is this party in power tends to be the one resistant to change. the question i guess i wonder is, the republicans have made clear their aversion to filibuster reform. speaker of the house john boehner called it dead on arrival yesterday. the question is whether democrats in the senate hold the line here or whether they say, we need to do something about a carl levin seems to think you can't push this through with the nuclear option. you need to get two-thirds on board. >> this is what happened when they last considered this in 2010 where you had the gray beards of the institution say no, this is supposed to be the [ inaudible ] for the house and chris dodds go to the floor and say this cannot happened. what happens with gray beards is they usually leave. >> or get grayer. >> we have a new class of senate democrats coming in and saying there is a legal and constitutional basis for doing this. the thing that i think gets confused here, is that they're not doing away with the filibuster. what reid is trying to do -- >> i think they should do. >> well, you can make -- you can have the argument because a lot of reproductive rights groups would be more cauckau -- cautio about them. have them show up and get 40 votes. >> if you try to break a filibuster there's a quorum call and you have to get a quorum assembled in the senate. people don't realize getting 51 senators on the floor is difficult logistically. >> i will take a break from this discussion of dysfunctional congress to go over to house speaker john boehner who is delivering his rebuttal to president obama's pennsylvania speech. let us listen in. >> little to nothing to solve the bigger problem here, which is our national deficit and our national debt. this debt doesn't exist because we don't tax small businesses enough. it exists because washington continues to spend too much. raising taxes on small businesses instead of taking a balanced approach that also cuts spending, is wrong. it's only going to make it harder for our economy to grow. and if our economy doesn't grow, americans don't get new jobs. and the debt problem that we have will continue to threaten our children's future. as i said the day after the election, republicans are not seeking to impose our will on the president. we're seeking a bipartisan solution that can pass both chambers of congress and be signed into law by the president in the coming days. now during a campaign, the president pledged to the american people he would seek a balanced approach to addressing the debt, the combination of new revenues and spending cuts. so the day after the election, i said to the republican majority would accept new revenues as part of a balanced approach that includes real spending cuts and reforms. now, the white house took three weeks to respond with any kind of a proposal and much to my disappointment it wasn't a serious one. still, i'm willing to move forward in good faith. our original framework still stands. instead of raising tax rates we can produce similar amount of revenue reforming the tax code to close loopholes and lower tax rates. that's far better for the economy and the american people favor that approach by two to one. they favor it more when we can also show them that real spending cuts will, in fact, reduce the deficit. now there have been many conversations over the last couple of years that could inform a solution. i hope the president will draw from those discussions and work with both parties to find common ground. solving the fiscal cliff in a manner that addresses the true drivers of our debt and saves american jobs will be a great way for the president to start his second term. and for the good of the country, and my colleagues, we're ready to work with the president to achieve those goals. >> [ inaudible ]. >> that was speaker john boehner on capitol hill offering his rebuttal to the president's speech? pennsylvania. michael crowley, i'm sensing that there is a -- the drawing of a line in the sand about the president's squandering some amount of goodwill that the republicans are now trying to sort of further as a mean out there almost as their answer to his presumption of reasonableness or the great reasonableness tour of 2012. >> yeah. you know, boehner saying this is not a game but that's part of saying it's not a game is part of the game. i'm not sure that there's was any genuine goodwill republicans felt to the president as a result of his election. i don't think they had a genuine sense they owed himming that and that's how politics works. fight tooth and nail to your greatest advantage and that's what they're going to do. i don't think obama has zaundsered anything by doing this. >> could i just say, i liked it when conservatisms used to hold down the anti-whining end. stop whining, suck it up. now it's umbrage all the time, whining, whining. we don't like what he gave us. he's squandering. like negotiations. we're all grownups. you're going back and forth on a policy matter. i find the constant invo nags of umbrage an offense. >> the wearing of this badge of balance and honor and integrity. it's politics, man. this is messaging and everybody has to do this and presume to be the party above it all but everybody does have to come to the table. >> or not. >> or not. the threat now is -- you see the beginnings of it, that the president has squandered goodwill and maybe if they make a deal, the next four years they're going try to make his life hell. if you want to see action on immigration or energy or financial reform in a big way, tax reform in a big way, you're forfeiting that doing what you're doing. >> weren't they going do that anyway? i don't know if anybody is as struck as i was how remarkably unchanged the rhetoric that boehner is using and this isn't changing at all. they're still talking about spending and deficits in the same way that they were before the election. nothing has changed structurally. i think they were going to do that anyway. i don't think the republican message has moved one iota after this election. >> this is why perhaps the only significant news that came out of that initial proposal was the effort to get the debt ceiling away from congress and towards the president's hands because if you -- although it blew up in their faces last time, congressional republicans were hinting they were going to use the debt ceiling again as leverage. so if they lost this first round to fiscal cliff talks they can say we want this and this. so what the administration is going to do is one of two things. insist any fiscal cliff deal includes a raising of the debt ceiling or they're going to say, we want the power to raise the debt ceiling. you know, i think that might actually end up being a big sticking point of the negotiation. >> understandably they see it as the biggest point of leverage. >> it also seems to me the tone is moving in the wrong direction. after the -- right after the election, there was a little bit of recrimination, a little like well, boehner sounded getting squishy and what's happened over the succession of weeks since then, as he's meeting with the caucus, there's a hardening. in terms of -- >> or a disbelief -- a disbelief -- >> comes out and says stuff like that, you read some of the local papers, these people rshs it. >> are telling their local paper we're in a bad negotiation position here. >> the problem is, had he's probably a guy that's going to -- boehner will still be dealing with after january 3rd. in the lame duck congress it's still the same congress and boehner still has to message to those people because he still has to gets the gavel back in january. i get the sense that he's dragging his dead weight of the tea party behind him to this day and i don't see how he can move off the same rhetoric, same talking points. what spending do you want to cut? republicans don't want to say because they have to still -- >> most hilarious part of this whole thing. >> there is no -- well now they can actually present a counteroffer. we talked about this before. it's a question of what they're actually going to put down. >> just a quick point on whether this is going to sour future relationship and possibility for doing things in the years to come, the parties will act out of their self-interests. if we have an immigration reform bill, republicans are terrified they're facing a demographic disaster. >> talk about gray beard. >> not feeling they got the short end of the stick on this deal. i think obama should get the best deal he can and let the other things take care of themselves. >> we have to leave it there. thank you to sam, chris, joy, and michael. you can catch chris on "up" tomorrow and sunday morning right here on msnbc at 8:00 a.m. eastern time. and before wrapping things up today we want to take a moment to share big news about a member of our "now" team, casey shaffer welcomed linus james shaffer levin into the world on november 21st. unfortunately' he's a scorpio. mother, baby and father are doing great. congrats and the newest -- our newest nowist. we'll see you back here at monday noon eastern, when joined by michael steele, the new republ republic's baits and musician andrew wfrmts kay. until then find us at facebook.com/now with alex. "andrea mitchell reports" is next. good afternoon to you, andrea. >> good afternoon. thanks so much. coming up here, president obama takes his tax plan on the road trying to sell it to the american people. republicans aren't buying it. congressman jason chav fitz joins me. fay yesterday and ambassador martin indyk with reaction to the vote at the u.n. and the wife of an american contractor jailed? cuba turns up the heat on the u.s. government and one campaign ceo michael elliott on the work that needs to be done. that plus the lottery winners power ball. "andrea mitchell reports" is next. n an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
CNN
Dec 2, 2012 9:00am PST
part of the daily negotiations on this fiscal cliff deal, although he is hiding from the press, which is an interesting game. as he kind of emerges, we know that marco rubio is running. he has already been to iowa. they both have these roles. what will a fiscal cliff deal -- will paul ryan get blamed if he does, and marco rubio can he turn the party around with some push for immigration reform? risky with the base. >> it also is interesting in these kind of years where the republicans have now suffered a loss. clearly mitt romney is not going to be the party leader. they don't actually have one, and you watch the wilderness lap for a while. >> you know, candy, i hate to say this because i know we want to play along for 2016, but i think part of the problem in washington is everyone is so focused on the next election it's always an excuse not to get something done. i think the american people think we just went through an election. now please now that you all have jobs, could we actually solve problems and get something done? you know, 2016 will be here way too soon, and people,
MSNBC
Nov 30, 2012 2:30am PST
would have to be matched by spending cuts in the fiscal cliff deal. >> as i told the president a couple weeks ago, there's a lot of things i've wanted in my life, but almost all of them had a price tag attached to them. i continue to believe that any increase in the debt limit has to be accompanied by spending reductions that meet or exceed it. >> asking that a political price be paid in order for congress to do its job to ensure that the united states of america pays its bills and does not default for the first time in its history is deeply irresponsible. it was deeply irresponsible in the summer of 2011, and it would be deeply irresponsible if we were to see that kind of approach taken again. >> with boehner calling on the white house to lay out specific spending cuts, senate majority leader harry reid offered his own response to the house speaker. >> he says that democrats have got to get serious about cuts, spending cuts. where's the disconnect, then? >> i don't understand his brain, so you should ask him. okay? >> huh. don't understand his brain. i don't understand your sena
ABC
Dec 6, 2012 6:00am EST
. jones rose 82 points yesterday. investors appeared optimistic president obama fiscal cliff deal be reached in about a week. today thee mortgages, obama administration will seniors be really careful before signing those. a new starbucks store is likely to a neighborhood near you. the coffee giant plans to open cafes across the country over the next five averaging two new stores a day. >> 6:26 right now. go in as a 2.5 point favorite. >> the goal is to secure a playoff spot. the baltimore ravens have a big challenge of defending against robert griffin iii third. >> he is still a danger of the of his rookie season, but the proready in of fame so to speak. he said the nfl season -- single record by a quarterback. in case you forgot already, thursday, they beat the giants 17-16. >> hockey returns to the verizon least for one night. the game starts at 7:00 and is sold out. welcome boost for businesses in the area. >> positive signs in the nfl -- nhl after a nine hour meeting between players and owners. >> a lot of issues. there continue to be some issues between the two parties. the play
CBS
Nov 28, 2012 5:30pm PST
boehner. the two agreed it was in foeryone's best interest to get a fiscal cliff deal sooner rather than later, both agreed to aim for one before christmas, but they also acknowledged, scott, it will be very difficult to achieve that. >> pelley: thank you, major. will the president's team find a receptive republican congress? nancy cordes is on capitol hill for us tonight. nancy. >> reporter: well, scott, one top republican aide actually told me today that he sees these talks as one-sided, that republicans have been making all the proposals, and speaker boehner said he's still waiting for a balanced offer from the white house. >> republicans are willing to att revenue on the table but it's time for the president and democrats to get serious about the spending problem that our country has. >> reporter: today on capitol hill, erskine bowles met with both sides. he's the co-chair of simpson- bowles commission that drew up a leading plan to cut the federal debt. >> i upon hopeful but i wouldn't put me in the optimistic wetegory. we have a long way to go and a very few days to get it don
FOX News
Nov 29, 2012 3:00pm PST
the house. every one is a white male. every one of them are white males. they couldn't have one woman? >> dana: rnc conference? conference chair. you know who the conference chair is? >> eric: we got to go. >> dana: kathy mcmorris rogers. >> bret: this is fox news alert. i'm bret baier. new developments tonight in the fiscal cliff negotiations. republicans are pushing back hard. against president obama and the democrats over what will be in whatever deal they craft to avoid the implementation of the automatic spending cuths and tax increases. chief white house correspondent ed henry is live with details. good evening, ed. >> tonight we have new details of exactly what treasury secretary geithner laid out to republicans in the big meeting earlier today is. the republican aides tell mike emanuel there was a lot of detail about the new tax increases. $1.6 trillion in new tax increases from the new rate, capital gain, dividends as well. new spending, starting with $50 billion next year. the white house is countering that is leftover stuff from the president american jobs act. not really spending. nonetheless, the republican aides on the hill saying this is a nonstarter to them. white house aide i just spoke to said that this is not new. this is the president's original budget framework going to september of 2011. they say inside the white house tonight the real problem is the republicans will not give in on new tax increases for the rich. so tonight we're still hopelessly deadlocked. >> optimism faded as tim geithner arrived on the hill ahead of christmas without bearing gifts. the specific list of spending cuts that spiker boehner wanted geithner to bring, leading the republicans to declare talks are going nowhere. >> i'm disappointed in where we are. and disappointed in what has happened over the last several weeks. i'm here seriously trying to resolve it. i would hope the white house could get serious as well. >> key driver of that anger is the fact that yesterday the president flatly declared while he wants tax changes now, spending cuts can wait. >> it would give us more time than next year to work together on a comprehensive plan to bring down the deficits. >> white house spokesman jay carney broke new ground declaring today the president does want spending cuts, listed in his budget plan to be included in the fiscal cliff talks. >> hold up the budget and say democrats on capitol hill vote for including the spending cuts in this deal to avoid the fiscal cliff. that is not what they are doing now. should they include those? >> yes. i think that, and i know that democrats accept that this has to be it, a balanced package, that includes revenues and cuts and spending cuts. >> months ago, the budget carney held up was voted down by the entire senate. 99-0. meaning no democratic support. earlier, dick durbin insisted spending cuts from entitlement reform will not be part of the talks while pelosi spell noncommittal whether the cuts will be in the deal. still, the administration is trying to breathe life to the talks, with vice president biden shopping at new costco in washington, picking up a big screen tv and apple pie and insisting he is optimistic of a deal. >> i am. i am. all the folks in the store, man. going to make a difference. >> carney shot down a politico report that a phone call last night between boehner and the president was curt, noting it was 28 minutes long and productive. signaling the president is flexible on taxes not being specific on the new rates. >> i will say there can be no deal without rates on top earners going up. >> that means that the rates do not necessarily have to go up to 39.6. it could be 37 or 38. meaning they might goose that to try to jump-start the deal with republicans. bloomberg reports that the treasury secretary geithner has been saying look, the sky will fall if we fall off the cliff. he has the power to freeze paycheck withholding levels regardless of how rates change. they can staunch the bleeding from falling off the fiscal cliff if that happens. >> bret: ed, the former presidential candidate mitt romney was at the white house today. >> it's relatively brief. we had lunch with turkey chili and not business. president did have a specific job offer or anything for mitt romney. after the white house put out a statement to say they pledge to keep in touch if the opportunity arises down the road that sounded like not so much. >> bret: did biden bring by the apple pie? >> they may save that for a celebration if hay get a deal. >> all right, ed. thank you. >> major retailers are reporting weaker than expected holiday sales so far. november receipts are 1.7% over last year. that is well below the 4.5 to 5.5 predicted for holiday season. the economy grew at 2.7% in the third quarter better than the figure announced. the dow was up 37. the s&p 500 gained six. nasdaq finished ahead 20. syrian rebels struck a major blow in the heart of the government today killing a top ruling of the party in a car bombing and someone is cutting off internet and cell phone communication in syria in certain areas. both sides pointing fingers at the others. all of this as decision-maker in washington try to make a decision on how involved the u.s. should be. we get the latest tonight from correspondent connor powell in jerusalem. hello, connor. >> forces loyal to bashar assad show a city of aleppo while rebels filed mortars at the damascus international airport causing damage to the runway to force several airlines to cancel their flight. >> the assad regime air superior over the syrian rebels appears to be disappea disappearing. in the past 24 hours they shut down two helicopters. rebels used the antiaircraft guns to shoot down the helicopters in the past. but now they have access to more shoulder-to-air missiles. >> we have shut down mitt-23 jet with this missile from the syrian army. >> but where the weapons truly come from is a mystery. both qatar and turkey reportedly have given fighters advance ited missiles on training and weapons confiscated from the syrian army. this comes as the white house is rethinking its approach to the two-year long war. claiming the lives of more than 4,000 syrians. the most controversial decision centers on arming the free syrian armies. so far the u.s. only provided nonlethal support like radio and communication equipment. some administration officials are privately pushing for deeper intervention in to the conflict. possibly even arming the rebels. >> we are always looking at and reviewing our assistance programs to the syrian opposition. syrian people. today i can say the position is what it has been, not providing assistance to the syrian opposition. >> rebels and theed is a sad government traded accusations today that the other cut off the internet service in parts of the country. u.s. state department said rebels had been provided with equipment that could operate independently of the syrian network. >> rebels continue to press for international assistance; particularly, from the united states but say they need real military hardware, not cosmetic assistance to defeat president assad in his regime. bret? >> bret: connor powell in the middle east newsroom. thank you. the question of just how safe americans diplomatic outposts are overseas came up for discussion today. on capitol hill. that plays to concerns by some republicans about the expected nomination of united nations ambassador susan rice. for secretary of state. chief intelligence correspondent catherine herridge connects the dots. >> at high risk sites including the benj consulate the internal state department reported 2009 recorded physical barriers like this one to prevent the overrunning of the diplomatic facility. closed hearing before the senate homeland security committee, witnesses testified the changes were never made in benghazi. >> disconcerting to see how easily they broke through the gates and walked in. >> the committee questions the striking similarities between the 1998 al-qaeda bombing of the u.s. embassy in east africa that killed 12 americans and injured 4,000 others. in 1998, susan rice was 33 years old and running the state department abrica section. >> ambassador to kenya sent repeated messages to the state department requesting a stronger p facility because of the increased threat. and those requests, as in the case of benghazi, were turned down by the state department. >> some say rice has baggage beyond the benghazi controversy. in the mid-'90s she turned down offer by the sudanese government to arrest usama bin laden. >> she is completely unable to admit she was wrong and take an position that led to escape of the man that ultimately killed 3,000 american, usama bin laden. >> rice may face trouble from the left not because of the diplomatic record but her financial one. sunlight foundation that espouses government transisn't reports rice and her husband said to be worth more than $20 million own between a quarter and half in transcanada stock. the company tried to build the controversial keystone pipeline. as to the stock ownership with a potential conflict, in white house spokesman insinuated the work was report of the opposition research group. >> none of this has anything to do with the tragedy that occurred in benghazi. this is about politics and that is a shame. >> the state department needs to sign off on the pipeline if it goes through. >> this is a group on the left, not on the right as the white house suggested. >> bret: thank you. >> you're welcome. >> bret: new talk about closing the guantanamo bay terrorist prison. government accountability office study says 126 detainees could be absorbed safely by prisons in the u.s. that idea you may remember was rejected before by congressional republicans and democrats. president obama ordered the closing of the facility when he took office in 2009. former president george h.w. bush expected to be released from a houston hospital in three days. mr. bush's office says he has been in and out of the facility treated for bronchitis. up next, egypt's president tries to smooth things over. [ male announcer ] introducing... a new way to save on your prescriptions. it's the aarp medicarerx saver plus plan from unitedhealthcare. with this plan, you can get copays as low as a dollar through a preferred network pharmacy like walgreens -- where you'll find 8,000 convenient locations. best of all, this plan has the lowest part d premium in the united states -- only $15 a month. open enrollment ends december 7th. so call today or visit your local walgreens. >> bret: egypt's president is trying to diffuse an increasingly tense political situation over last week's perceived power grab. he addressed his people a short time ago. correspondent steve harrigan is live in cairo where it's early friday morning. hello again, steve. >> egypt constitutional assembly trying to push through a constitution in one day. what is not clear at this point is whether the new constitution will calm down the street protests or inflame them further. a few key elements gleaning from the document, slight limit on presidential power, limiting the president for two terms of office of four years each. so, no rigid code of behavior inside the document. the next step for constitution will be a national referendum in the next two weeks that people have to vote on it. that could be way out of the tough situation last week when morsi said his acts were beyond the judicial review. that ignited street credits there. >> we have to share everything on the table laws. for stable laws and separation of powers. the matters should be independent and will take tim time. >> they stress the faith of each constitution will be decided by the egyptian people. >> it will be up to them whether they need their standard. have a chance to make it clear. >> it's a question whether the move will be enough for the opposition. they have come out in force for seven nights. your will see likely protests in short-term on friday by those wanting to drive the president out of office. the size of the protest will give the first you indication of where they stand. >> thanks. united nations upgraded status on the world assembly to take a step toward recognition and ignoring u.s. opposition. eric shawn has that story tonight. >> in washington, bipartisan group of senators are threatening to cut funding if they use the status to punish israel. >> two states, one jewish and one arab. >> the jewish territory created israel. but for three palestinians palestinians rejected that. today they took a step shy of statehood. they are granted wider participation in the u.n. system and does not create a country. >> we will not give up or tire. the determination will not wane. we'll continue to achieve peace. above all, i felt the people would not relink tish the national rights. >> the vote went against the wishes of the obama administration. the israel and u.s. voted no saying two-state achievement can only be achieveed through the direct negotiations. >> today unfortunate and counterproductive resolution places further obstams to pass to peace. that's why the united states voted against it. >> last year, mahmoud abbas sought statehood through the security council. israeli officials brand it as a public relations act without any real meaning. >> why continue to make painful sacrifices for peace in exchange for pieces of paper that the other side will not honor. >> it will make it less likely. >> jerusalem, as the prime minister benjamin netanyahu called abbas' speech hostile and poisonous and full of false propaganda. it seems tonight the 1947 vision of two sides living peacefully side-by-side is as elusive as 65 years ago. >> bret: eric shown outside the united nations. thank you. still ahead, what gets cut to avoid going over the so-called fiscal cliff? first, it may be legal but it doesn't mean you can get away with it. legalized marijuana and how it can affect you job. [ "the odd couple" theme playing ] humans. even when we cross our "t"s and dot our "i"s, we still run into problems -- mainly other humans. at liberty mutual insurance, we understand. that's why our auto policies come with accident forgiveness if you qualify, where your rates won't go up due to your first accident, and new car replacement, where if you total your new car, we give you the money for a new one. call... to talk to an insurance expert about everything else that comes standard with our base auto policy. [ tires squeal ] and if you get into an accident and use one of our certified repair shops, your repairs are guaranteed for life. call... to switch, and you could save hundreds. liberty mutual insurance -- responsibility. what's your policy? ♪ ♪ [ male announcer ] while you're getting ready for the holidays, we're getting ready for you. tis the season. for food, for family, and now, something extra -- for you. >> bret: sas is a says there is ice on the closest planet to the sun. messenger spacecraft found evidence of frozen water as much as 65 feet deep at mercury's north pole. messenger spacecraft is the first to orbit the closest planet to our sun, mercury and it's been studying that planet for a year-and-a-half. now a story about another kind of high. it's legal under state law to smoke marijuana recreationmly in certain places out west but it does not mean you can get away with it without consequences. dan springer with a look in the legal and professional weeds. >> when voters in washington state and colorado legalize the recreational use of marijuana for adults, pot advocates party. the buzz could be short-lived. we may be -- weed may be legal to smoke at home but show up to work with it in your system and you can still be fired. attorney jim shore won a state supreme court case for a business that canned worker over medical marijuana. the ruling still applies and so should federal law. >> system of dual sovereignty, regardless of what washington or any state does to legalize marijuana the federal government treats marijuana illegal for all purposes. >> union workers may have a different set of rules to set up another fight between labor. >> we'd vigorous defen our members rights to engage in legal conduct out of work. the burden is on the employer to show impact on the job. >> medical experts say the marijuana high lasts two to three hours but traces remain in the body for up to a week. how long is person is impaired is up for debate. but it's longer than alcohol. >> it is dangerous and has an impact on safety. do you want to board an airplane within 24 hours of your pilot smoking marijuana? i don't think so. >> many construction companies have zero tolerance drug policies. owners say the new law will cost their workers and make it harder to hire new ones. larry gregory owned a drilling company. >> my men have to be clear-headed. not only that, they are going to do dangerous work. >> biggest worry for business owner is the higher legal bills. possible results concerned to light up within their right but it could have more of them showing up in the unemployment line. bret? >> bret: dan, thanks. she became famous for having her virtue besmirched. now sandra fluke is selling herself. we'll explain. plus a tale of two protests and how a media outlet covered them both. wait until the last minute. can i still ship a gift in time r christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. hi victor! mom? i know you got to go in a minute but this is a real quick me, that's perfect for two! campbell's chunky beef with country vegetables, poured over rice! [ male announcer ] campbell's chunky soup. it fills you up right. share "not even close." share "you owe me..." share "just right." the share everything plan. shareable data across 10 devices with uimited talk and text. by htc for $49.99. >> bret: now, fresh pickings from the political grapevine. on the day that former "today show" producer zucker tapped to head cnn some are questioning the decision-making. the news busters report the march for life that drew tens of thousands of peaceful pro-life manualers to washington, d.c. earlier in year, was given by two brief mentioning on the channel. but by comparison the protesters who stripped naked in house speaker john boehner's office, not shown here, were interviewed for move minutes wednesday. solodad o'brien's first question was how did you get naked to the speaker's office? it can't be easy to get access and then take off your clothes. she closed the interview thanking them for keeping their clothes on in the studio. >>> feminist activist sandra fluke is auctioning off an hour of her time for a political strategy session. the college fix from the auction page social justice activist fluke will help you harness activism or advocacy. if the offer sounds temping it's worth noting it won't be a face-to-face meeting. 5 i sales are final. ample man arguably one of former presidential nominee mitt romney ardent supporters flip-flopped. eric heartsberg, the professional wrestler who inked the romney-ryan low ge on his face was going to keep it. he told politico he would never have it removed. now he is planning to laser it off. process could take a year. he was disheartened by the post election comments; particularly, that the president won because of gifts from various constituencies. it stands not only for a losing campaign for for a sore loser. he is pretty shameful as far as i'm concerned. >>> we told you earlier while the white house is saying spending cuts will likely be included a final fiscal cliff deal, the devil is in the detail. what is to be cut. there are plenty of places to look. >> while democrats and republicans were speaking over each other at dueling press conferences -- >> the spending is out of control. >> now is the time for the republicans to move past the happy talk about the revenues. put specifics on the table. >> nonpartisan citizen against the government waste laid out specifics to identify 392 billion in spending cuts next year. $1.8 trillion in cuts in five years. >> it's close to the $4 trillion figure that is thrown around as the objective for the discussions on reducing deficit. >> agricultural spending alone they found $85 billion in savings. it suggests eliminating the rural utility service, legacy of the roosevelt era. rural america is now electrified. killing that service could save 44 billion of the five years. eliminate ethanol subsidiarie subsidiaries. they cause farmers to grow corn for food not fuel. i would save $30 billion in five years. eliminate sugar subsidiaries to double price of sugar in the u.s. to save $6 billion. darely support. they are propping up the prices to add it would save $5.7 billion. why hasn't congress eliminated the kind of programs? >> they don't want to give up the power or the jurisdiction or the money. you it is a lot easier for members of congress to run back home an say i am fixing this problem by spending money. >> some members buck that trend. gao report commissioned by the republican senator jeff sessions and burn bush burn mire rors that of -- burn bush burn mirrors of that. and they are optimistic despite the public posturing to suggest otherwise. >> the fact you are not hearing details. is good. we'll sol tv one way or another. solve it eventually. the market will solve it for us. >> if a deal is struck without them it could be satis satissic to the leadership, whose membership would be unlikely to vote for a deal. >> thank you. >> the judge said they need new independent regulation system for the press. it comes at the end of the review brought on by the phone hacking scandal there. good deal of that controversy around the defunked news of the world tabloid owned by the parent company of this networ network. new details tonight about what you tim geithner said on capitol hill as the administration suggesting spending cuts might be on the table. sooner rather than later. which ones in latest on fiscal cliff. fox all-stars next. dry mouth may start off as an irritant. it'll cause cavities, bad breath. patients will try and deal with it by drinking water. water will work for a few seconds but if you're not drinking it, it's going to get dry again. i recommend biotene. all the biotene products like the oral rinse...the sprays have enzymes in them. the whole formulation just works very well. it leaves the mouth feeling fresh. if i'm happy with the results and my patients are happy with the results, i don't need to look any farther. ♪ [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going onow -- but hurry, the offer ends soon. >>> the country doesn't need a victory lap. it needs leadership. time for the president and congressional democrats to tell the american people what spending cuts they are willing to make. i'm disappointed in where we are and disappointed in what has happened after the last couple of weeks. >> if they insist on spending cuts then the onus is on them to come forward with some ideas. >> now is the time for the republicans to move past the happy talk about the re-knews ill-defined of course to put specifics on the table. >> bret: the dance continues on capitol hill. tim geithner was up there today and had specifics according to the republicans. this is what he brought to the table. proposal detailed to avert the year-end fiscal crisis with $1.6 trillion in tax increases in ten years an new round of stimulus spending. this is how it broke down. $960 billion there. additional tax increases equal to $600 billion. 2009 level estate tax. multiyear stimulus package starting with at least $50 billion next year alone. permanent increase in the debt ceiling, the debt limit enough to avoid it. in exchange, $400 billion in savings from the medicare and other entitlements to be worked out next year with no guarantees. that didn't go over well. syndicated columnnist charles krauthammer. what is going on here? >> you know, up until today i didn't think -- i did think that the president had shown leg on entitlement reform. he did no 2011. when the house speaker failed to reach a grand bargain. you heard signals from dick durbin said on the sunday shows that medicare had to be on the table. he circled back and say it couldn't be part of the down payment. a lot of confidence that the president is willing to go over the cliff before he would do anything to entitlement. this is the -- the ball is in the democrats' court, not in the republicans that i spoke to today. did say that the administration proposal just as boehner said is not serious. it's insulting. laughable. heavy on spending. there is no entitlement reform in there. they want the decouple of the tax rate for precondition for any discussion. they considered the sequester cut that everybody said is just fine. happy for those to be the only cuts on the table. >> all of this talk about the behind the scenes is going better than the public discussion. >> that's what i thought was happening. but it's not. the way they characterize talks is they're going backwards not forward. if president obama is talking about taxing the wealthy. it doesn't get you there. the math doesn't add up. i doesn't get you out of the hole. but if they get that on december 22 and all he get he is has a seriouscliff on his hands. >> i want to play this. question to nancy pelosi. the minority leader in the house about spending cuts and what she is willing to do. >> the thing on the spending cuts -- the definite -- [ inaudible ] >> $1.5 trillion in cuts is a lot of money. we in washington, d.c. and we get used to big numbers but $1.5 trillion in cuts you go beyond that, you are talking hurting the growth of the infrastructure and education of our people and the pillar, the pillars of our economic strength. >> bret: that is a message, steve, we cut enough. yesterday, i should point out that senator reid meant to say $1 trillion. not one $1 billion on the sound bite we played to be fair to him. but nancy pelosi is clearly saying we're done. >> you see this in the comments that the democratic members of the house made to the public. big argue in politico, not refrenching on entitlement. that is not going to work. if that he are not willing to give on more spending the republicans are increasingly thinking fine. go over the cliff then. you take us over the cliff. >> bret: what leverage do republicans have? >> republicans don't have a lot of leverage. this is the disagreement with charles on his take on what leverage republicans have. i don't think they have much leverage. if the question is sign up for tax increases, so that you can have a terrible deal that doesn't do anything to reign in entitlement and doesn't make serious spending cuths you are seeing more and more republicans look around and say that is a bad deal. might be better than the other possibility. >> not just a bad deal. this is insulting deal. robert e. lee was offered easier terms and he lost the civil war. the democrats won by 3% of the vote. they did not hold the house. republicans who won the house. this is not exactly unconditional surrender but that is what the administration is asking of the republicans. this idea that they are not only no cuts in this, there is an increase in spending with a new stimulus. this is unheard of. what do they expect? they expect the republicans will cave on everything. i think the republicans ought to walk away. the president is the president. he is the leader. they are demanding that the republicans explain all the cuts that they want to make. we had that movie a year-and-a-half ago where paul ryan presented a budget. serious real budget. with real cuts. obama was supposed to gave speech where he would respond with a counter offer. what did he do? he gave a speech with ryan on the front row. he called the ryan proposal un-american, insulted him. offered nothing and ran on mediscare in the next 18 mont months. they expect the republicans will do this again? republicans will walk on this. i think they have leverage. yes, for congressional democrats it will help them in the future if the republicans absorb the blame because we will have a recession. obama is not running again unlike the congressional democrats. he is going to have a recession. 90% unemployment, 2 million more unemployed. second term that will be a ruin. that is not a good proposition if you are barack obama. >> bret: before you respond to that, a.b., there is one thing that speaker boehner talked about today, leverage wise. that is tying the debt ceiling limit to this entire deal. and the white house reacting. >> there is a lot of things i wanted in my life, but almost all of them had a price tag attached to them. if we talk about the debt limit, there will be a price tag associated with it. >> asking for political price be paid, in order for congress to do its job to ensure that the united states of america pays its bills an does not default for the first time in its history is irresponsible. >> that is the leverage. that is why if the republicans in the final hour of the fiscal cliff negotiations say fine, you can have this much re-knew from the cap and deduction and closing loopholes we will budge on the rate. 37.5%. that is not must have none. if it is not tied to debt ceiling increase that would only pass with the aggressive medicare reform they have to have a separate debt ceiling fight in member. where do they find the math for that? republicans won't vote for anything without commensurate spending cut. >> bret: i know i will do this 100 more times. over the cliff or not? >> as of today, yes. everybody in one all the way down. >> yes or no? >> i stay optimistic. for another few days. no over the cliff. >> probably not. by some easily deal at the end. >> bret: that was iffy. that will change something tells me. next up, how involved should the u.s. get in syria? >>> our main focus right now has been to work with other countries to try to provide whatever assistance we can to the opposition. so that ultimately it can become not only an effective force but ultimately can come together to provide the kind of political transformation that we think is ultimately going to be needed once assad comes down. >> i can cat goricly state that today our position is what it has been, which is we are not providing legal assistance on the syrian opposition. >> bret: this has the front page of the "new york times" today had a story saying this -- u.s. weighs bolder evident to intervene in syria's conflict. they are publicly saying that that is not the case. however, privately officials may in fact be doing just that. this is president bashar assad's forces shelled the city of aleppo. in the past 24 hours, two syrian aircraft shut down by rebels a helicopter and a jet. back with the panel. charles? >> the reason the administration is now going to change the policy, has to because the ground is shifting in the war. up until now the rebels taken lan but couldn't hold it the ground now is turkey and aleppo. every time they go to damascus and seized for example military bases, they are only able to hold it for a day or two because of air power. what just happened is that there is a huge strategic shift. the rebels now have shoulder-held missiles that can bring down a helicopter. and a plane. when that happened in the afghan war against the soviets, the soviets lost. that was a great strategic change. once the russians lost control of the air, the war was essentially over. that is happening right now. because of that, i think the feeling is what has bob a back and forth, tailmate, looks as if the advantage for rebels there is no reason it should not. result is fault of regime. the administration understands this. time is running. they will have any influence on the government and inhelicopter syria, which is now rebels are ally infiltrated. time to intervene and get friends is now. >> bret: a.b., speculation that the administration may be covertly helping the rebels in some way. allies may provide weapons directly. publicly, they say they provide the communications equipment and radio and nonlethal support. how does this evol n the region there for the administration? >> start with the fact that the president is not have a national security team in place. they can't make serious commitment until the team is in place. people are leaving, we don't know who is coming. with learned of their shift but we don't know they can make that shift officially. way tonight no of the only because of what charles points out that time is running out for them to influence the opposition. infiltrate the opposition. they are worried as the opposition is seen more sophisticated weaponry, they don't know where it's coming or going to. they might have a role behind the scenes. how it is getting to them. but they are not sure who is setting up with. but concerned about the hardline elements in the opposition. anti-israeli strains. they have to figure out who the people are. and that, like i said, will be challenged given that the team is not pulled together. >> well, the time to intervene if we were going to intervene was year ago. more than a year ago. the fact -- if we do it now, better late than never. but we lost so much ability to influence the outcome there because the president wanted to control the outcome or dictate outcome or didn't want anything serious to do with it at all. better in my view if you provide assistance to opposition tonight a open way and say we're providing assistance to the opposition, in return, we expect certain things of the government that replaces bashar assad. the concern i have is speaks to what charles, the point charles made. if we can recognize they're becoming boulder because the ground is shifting in the war itself, if that looks opportunistic to us it will look opportunenistic to people we're supposed to be helping. you have had 30,000 plus sireiance die on the ground. the relatives and families won't look kindly on a united states that stood by to watch it happen. >> steve is right. we are very, very late. the reason is that we had an election. obama wanted to wash his hands now. je to do something or we will end up with a nasty regime in syria. >> bret: that is it for the panel but stay tuned for more analysis on the nuclear option. >> bret: some some of that has to be harry reid stopping by to block dinners of the mashed potatoes. mitch mcconnell is warning it could get worse. >> in the name of efficiency they would prevent the very possibility of compromise and threaten to make the disputes of the past few years look like mere pillow fights. >> he is
CNBC
Dec 4, 2012 12:00pm EST
>>> nokia can raise cash by taking pictures of kate middleton on nokia cameras and selling them to the tabloids. that does it if for us on this tuesday. back to headquarters, wopner and the "fast money halftime." >>> it is time for the halftime show, four hours until the close. here is where we stand on the street. the dow is hanging on to positive territory by just about 17 points. you look over my shoulder here, s&p, nasdaq negative. here is what we're following. the path to 1600, street strategists says will get there sooner than you think. he'll tell you exactly how. open house, toll brothers wows the street. should the stock make a move into your portfolio? we debate that ahead. first our top story, dueling over a cliff. now that the white house has rejected the latest offer from republicans, where do negotiations go from here and what does it mean for your money? our traders for the hour with us. joe, right to you. the other day you were bullish. you were fighting with me why you like this market. now today you're cautious. tell us why. >> what i have done is begin to pare down risk. to use the word cautious is correct. back to november 16. it seemed at that moment when the s&p was trading there were policy makeers in washington, d.c., responded to the market. pelosi talked about the market on that friday, and that's where the encouragement came. i think where we sit now the market is going to force the hand of d.c. policymakers. i still think we get a fiscal deal cliff done. the data we saw yesterday was lousy. the employment component was the worst we've seen since september. i think on friday we're going to get a horrible unemployment report. i think the market is going to force the hand here to get a deal done. this is a tactical call. >> joe has gone a little sour on the market. where do you stand today? >> i'm going to stay as pos 0 tiff as a week ago. you look at the s&p and that's why i will stay positive. sitting around 1407. it broke through key levels and has moved back higher. 1425 on the s&p for an area to break above. so i think i will agree with joe, though, that right now with the data you have seen, with the ism number you saw yesterday, washington has to get something done. i think a deal will get done and the market rallies. >> steve weiss, does the data change? you have a guy who has been bullish, did defending the market every move lower. it's come back and he's defend ed it. >> i departmeidn't see the markg much between now and then. if you're really squoeoverweigh equities, you're playing for one thing, for a resolution, the fiscal cliff that you can live with. we've had china come, the chinese markets are down. our markets are not believing that. europe continues to worsen so there are lots of issues out there, lots of reasons to be negle negative plus corporate earnings. i remain cautious. >> the former chief economist and vice president biden, tony worked in the bush 43 white house, both cnbc contributors. good to see you both today. is the white house going to accept anything but tax rates going up? >> well, they've never completely closed the door on that. >> it's like maybe just a crack, and i mean it's a small crack. >> yeah, and it's a very small crack and it might even be closing. they are very much about the high higher rates. the thing that i think the white house is having legitimate problems with in this new offer from john boehner is the lack of specificity. tony and i argued this a lot. he makes a great point. do we have to argue about rates versus base? is we can talk about base. and at this point republicans have done the same thing mitt romney was doing. $800 billion in new revenues from unspecified chose urs. the time for that is past. i'm glad they're coming with a counteroffer. they have to put specifics on the table. >> tony, under any circumstances, as you sit here right now, are republicans going to agree to let tax rates increa increase? >> look, i find that almost impossible for republicans to do, at least before december 31. i think everyone understands that it is the single thing that the president wants more than anything else. you can sack rifice just about anything to get the top two rates. so i don't see republicans getting on that issue. i think what you are seeing, and i do give credit to speaker boehner for rising above, bring in the proposal yesterday and getting the full republican leadership onboard, talking about specific numbers and maybe see the beginnings of the con turp of an eventual agreement. but it's just not going to cut -- i don't see how it comes before december 31st and it's going to have to happen. not going to take an active vote that way. >> let me reflect. two things, first of all, i actually think we're going to get a resolution to the fiscal cliff. i just think it's going to come after we go over. so that's not unlike -- >> we agree. >> the idea there is actually republicans can claim a tax decrease. that is you can take the rate down from 39.6% to 38% or 37%, something like that. the president gets what he wants, which is higher rates. the republicans can claim victory as well because they're lower than they would have been otherwise. >> tony, let's assume we do, in fact, go over the cliff. as both you and jerrod suggest that we likely will. the market will likely go down and go down hard. a new poll suggested if we do go over the cliff that republicans are going to be the ones who are going to be blamed. how will we deal with that with the market being held hostage by these negotiations which seemingly, at least in public, are going nowhere? >> first of all, i think the markets might be better to listen to me and jerrod rather than whoever is telling them this could absolutely get done and the republicans will cave and that's just what's going to happen. i mean, they should listen to us more because the politics of this are really, really important and make it very difficult for the sides to come together before january 1. i think it makes it really hard. we should be pleasantly surprised if it happens. i think there are people who want to have it happen beforehand. we need to prepare them for the more than likely case that is we're talking about january fixes on this stuff and not december fixes. >> and i also don't believe that the market necessarily goes down hard. i think it does go down. i think if there's a plausible, credible plan that just isn't complete yet on december 31, the kind of scenario i was discussing earlier, i think the market could take a relatively small hit. >> i just throw out the number 777. do you know what that number represents? >> i was standing next to president bush watching the t.a.r.p. vote go down when that came up on the screen. i'm very, very familiar with it. i don't think that's the same kind of scenario that we're looking at today if the messaging from policymakers in washington is good enough to talk about how we can deal with mitigation of some of the fiscal cliff. >> it's great to have both of you with us. i appreciate your time very much. thank you. have both of you back soon. you've heard the arguments. they said the markets shouldn't be looking at this so much. how are up trading the action we're hearing as you sit there in chicago today? >> well, i'm putting on positions that are less susceptible, scott, to some of the volatility that i anticipate is going up. i mean, the vix is up 14% since last friday. the reason, again, the president's offer and then boehner's counteroffer. that's why the vix, in my mind, has moved up as much. to steven's point as far as negativity, i see a lot of positives potentially going out there. i mean, look at germany up 22%. we take that for our performance out of our market this year but the reason that the world is waiting is if we really do push all the way up until the cliff and a decision is not made with a little bit of a look back until 2013 even if the rates remain roughly the same, i think we're dancing with the devil there and the rest of the world is already making decisions. we've seen it from the dividend pairs and so forth and the acceleration, larry el some and everyone else accelerating or declaring specials. i think all of that is potential negative going forward to 2013. >> now, guys, the market is negle negative across the board. do you agree with what both jerrod and tony made the argument as long as we get a bit of the framework in place, before the end of the year, that the market doesn't go down, in my words, hard, which he didn't think it would. what do you think? >> i don't think it goes down hard. i think it's a little bit like a down grade of the u.s. debt. our debt gets downgraded, the market will collapse. guess what, it was talked about so much before it happened that when it happened, the market traded up. we're in a similar situation. if you take a look, forget about the politics, when you take a look at who has the best bargaining position, you have to come out with who is sitting in the white house. if he does nothing, it's exactly what jerrod said. i think that's what ultimately happens and then the market looks to next year and then the market goes up. but we don't -- i don't see a very big hit to the market from a deal not happening. >> and exactly what you just said is one of the reasons why tactically i am cautious here. ublicans really do not have much. golden in terms of negotiating right now. however, they can wait around for friday. if we do get a lousy unemployment report, well, then they have a little bit that they can push back against. >> explain that because of the storm. >> i don't think all it have it will be explainable by superstorm sandy. i think a lot of it is pulling back. you've seen the capital investment. >> we have to move on but i have to push back on one thing. are we talking about two different things? when we got downgraded the market went down hard. more than a trillion in value. >> but the market price. the market came right back and actually went to new highs not that long after that. once the knee jerk reaction was done. the market is being sensitized to it right now. and that's a good thing. >>> two companies that issued special dividends ahead of the fiscal cliff and if you're keeping score at home that's 103 companies thus far this quarter valued at more than $22 billion. so we see this continued parade of companies just coming out and issuing special dividends whether it's by debt, with debt, or cash on the balance sheet. >> the big one there, scott, is costco. last week when costco made the announcement, it was up 5%, almost 7% on the news. oracle moves their dividends up and the stock is flat to down on the day. coach announces a special dividend. they are down. i think the market is pricing in. it's been so overtalked about. i think the market is pricing this in a lot and special dividends will not have the same impact they had. >> good point, tok. what do you think about that? once the luster of these dividends wears off, so to speak, what happens to some of these companies? are you watching some more than others, one specifically over the rest? >> well, sure i am, scott. i still think that google and 0/or microsoft could declare a dividend bigger than all declared so far because, as you said, it's about $22 billion. both of them could easily do it that if they wanted to. but i go back to what murphy was talking about as far as going forward, a lot of the demand when you did that cash for clunkers, that pulled demand forward, demand that would have been out there months in the future. in the case of these dividends like larry ellison did, this is money people would have been getting in 2013. granted they're getting it at better tax treatment by getting it in 2012 but they are not -- >> as himself. >> there are not nearly $200 million just for him. they're not pushing this money out in 2013. that could be a little bit of a pull on a negative out in 2013 for all the ones doing what larry ellison is doing. >>> we'll hear from one of the companies, ethan allen ceo will be here to discuss his decision and why he believes it's the best use of his capital right now. there he is, he's coming up. but first, home builder tulle brothers, double digit growth. shares up 60% thus far. make room for the stock in your portfolio. shares of bank of america having the best year since 1991. a look at whether this rally will hold on to next year. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] this december, remember -- what starts with adding a friend... ♪ ♪ ...could end with adding a close friend. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. >>> it's a big quarter for the largest home builder. toll brothers seeing an increase in selling prices and a big drop in cancellations. is it more proof you should be buying the housing recovery? yes, says mr. murphy. no says steve. debate it. >> valuation. we have toll right now about three times book value. exactly where you are in new home starts right now and we're only selling it $370,000. stocks have gotten ahead of themselves. full disclosure, i've been wrong, a dog having its day. >> he points to 2005. you look right now it toll brothers have had had its pullback, about 15% off its peak. let's look at next year. they've said the ceo expect revenue and incomes over 20%. >> i don't believe ceos. i like to do some of my own work. >> if you look at the last four quarters, they've increased -- they were up over 40%, over 50%, over 60% and now over 70%. you want to talk about momentum, we're a company that's working. these guys, there's nothing about tol hl brothers that isn' work i working. 70% deliveries. any metric you want to use, the higher end. >> these guys are really focused on the right market and maybe three, four, five days because of hurricane sandy. >> i'll give you all that, everything you say. you are absolutely right. the question is what do you pay for? compared to historically where it's sold. >> right now -- three times book value. >> like 30 times. >> i would rather pay 50. >> the stock is trading at 30. >> ridiculous. 50% of book value and still participate. >> i'm going to bust this up. who made the most compelling compelling argument? >> i'm going to say they both did. that is impressive at toll brothers and tells you the strength. just as stephen said, very accurately called toll and he's ridden them much further than i have. now they're only about 5% of my portfolio. they were as much as 15. i've taken a lot off because of that valuation value. >> whoever says i think he's guilty and innocent? set this will one? >> stephen weiss wins. the orders were strong. 20% better than expected. this was a strong earnings report. the stock is trading terrible today. pulling back from the highs. the street does not believe the sto story. upgrade the stock and raise the targets. valuation is full. the story is known. housing recovery is here. prices are going up. it toll brothers is not responding. >> steve grasso is watching key levels on the s&p. we were talk iing about s&p 50. what are we watching? what's the exact level we need to keep in mind? >> we broke the average to the down side. 50 day is 1420. the problem is when you look at the 1405 level, this is a real soft support. below this is 1395. that's your real support. below that 200 day at 1386. >> give me a read, also, grasso, on a stock you talk with about a lot and that's bank of america. a stock moynihan was on "squawk box" this morning. stocks up 80%. do you buy here? >> it's got to close above $10.11. that level has been kryptonite for the name. if it doesn't close above there aggressively, you're probably looking at sub 9%. if we're trading, you know, subpennies. so it's got to trade above that. you've got to hold on to that level. but obviously there's a lot of scares going on with the cliff. i love this new spot with the debate. you take john's side. they're both right but if we go over the cliff, the biggest things you're going to see are the housing names be dragged right back down. >> yeah. grasso. good to see you. >> boa is one we agree on. we're both adding to it. it's a great stock. >> all right. let's do a market flash now for a check on what's moving now. what are you watching? >>> apple hit a two-week low this morning. late morning, and then we saw huge 2.36 million share trades come in. that's about a $1.35 billion trade. a lot say that's associated with option activity. the other thing is technicians are watching it. talking about the moving average and the other stock. apple continues to go lower here moving further away from its moving day average and we are watching potentially 50 day moving average may cross below the 200 day moving average. got to wonder is the stock broken? >> let's ask joey generation, the man who said apple was a generational buy a couple weeks back. >> indeed i did. yesterday afternoon i sold a quarter of my apple quick wit position. what does that mean? the appreciation is going to slow. i think it's the asset that looks most bond friendly in a bond friendly environment and on a pullback i will go back to full share size. >> these companies are in our top three trades. gold breaks below a key technical level. we're going to go to the pits to find out if it's a sign of even more selling to come. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. >>> just about to make the turn on "halftime." let's do our top three trains. a great november in part because of this one right here, yahoo! about 12% last month. still a buy at these levels? i mean, the move that we've seen since marissa meyer has taken over, are we talking style or substance behind this? >> i think there has to be both, are scott. i'm more of a believer today than last week. the stock had the pullback we all knew was coming and now it's taking off to break out to new highs. deutsche bank was out this morning. they upgraded yahoo! japan to a buy. it is a buy here and can break into the low 20s. >> a good day for a stock that hasn't done much of late. opened lows not seen since september of 2009. you're getting the 3% rally today but otherwise ugly. >> yeah. it's kind of interesting what's going on. we've had consistently good chinese data coming out, and that -- >> which you're a big believer of. >> well, that generally drives the move in the stocks, but we haven't seen that. so, to me, the chinese news that's coming out, i don't believe all the numbers and, number two, they're still producing too much steel, cutting back on capacity or should be. that's bad for iron ore. if you look at the coal inventories, they continue to build up which means that there's less being bought as well. so i'm no longer short the iron ore names because i took long exposure off. i took short exposure off as well. i'm not buying into it. at some point they will bounce but they're still not cheap because fundamentals continue to decline. to me this is a bounce. i take any profits. unlikely you have any unless you bought it this morning when it opened lower. >> a nice concise answer. joe, dsw joining a special dividend parade, accelerating p payout to december 28. stock up almost 4%. >> yes, indeed. 52-week high, $72. takes a stake in the company. look, dsw has the momentum to the upside. what you do here is buy some protection underneath the market. you look in the footwear space at another name, a tremendous amount of cash, black friday momentum real strong. that's foot locker, fl. that's where i put my shoe dollars. >> gold is below $1,700 for the first time in some -- well, i guess about a month or so. does that mean more pain is in sto store? to jackie deangelis, the host of online sensation and it is a sensation. known as futures now. jackie? >> good afternoon, scott. well, you're exactly right. you might think that the fiscal uncertainty would be driving gold higher about but, instead, just check out this chart. at the lowest level since president obama was re-elected. just now under that $1,700 mark. what's behind the sell-off and is this a buying opportunity? let's start talking futures now. let's start with you, you and rich have been bitten by the gold bug. are you ready to throw in the towel here? >> jackie, i'm not ready yet. usually when you see a day the dollar is as weak as it is, gold is higher. what's happening today is you're seeing a lot of profit taking on gold. it's not profit taking because we're up 9% on the year. traders are worried that some deal with the fiscal cliff will call for higher capital-gains taxes so traders are getting out of their gold positions before that might take effect. >> so profit taking, meantime, rich, what is dipping below the $1,700 mark mean? is that really the right level to be watching? >> well, we gave you the level $ $ $1,706. you're looking at $1,672. every trader will tell you it is a big level here, a close below that and there's more pain. in fact, let's watch today's close, in one hour, if we close below $1,700 i think there's more down side potentially. >> okay. so that's exactly what we'll keep our eyes focused on. you know what our guys are doing. what do you think? are you buying or selling the dip in gold? logon and vote in our poll. we'll give you the results in our website and you should tune in into today's show. check that out. we have more on gold. we'll talk to harvey kanter, ceo of the jewelry company blue nile. what he sees in gold and silver demand this holiday season. scott, for now, back over to you. >> we'll look forward to the sensation in about 30 minutes. guys, let's talk gold. a few days ago we were asking when gold had this huge $30 pull back, what's going on with gold? why is it making such a move? what's the relation, if any, to the fiscal cliff? >> i think what you do with gold, you own gold. i don't think you trade gold. i think the likelihood in 2013 that there is a second half of the year recovery and growth for the u.s. market is somewhat not as bull iish for gold and for silver itself. so i think a lot of people have incorrectly placed themselves as gold and silver traders. i don't suggest doing it. >> i think what you're seeing in the gold markets right the now and you've seen early morning trades coming in and gold selling off dramatically, a lot of talk that it's some very large hedge funds unwinding big positions. the sell-off in gold here presents a buying opportunity. it's come down enough i think you can buy it here for a push back high enough. >> if you look at paulson, it's another year of bad performance. they're pulling money out. he's one of the biggest holders of gold. i would guess that he's probably selling and pressuring the market. others are following suit. so to me you can't trade gold, as squoe says, it's an emotional trade, no real way to pay the intrinsic value. i stay away. >> a good point you bring up about mr. paulson, obviously don't know what he's doing with the position that he is known to have in gold but, nonetheless, it's a good point. still to come, we tackled three stocks trading near 52-week highs and whether it's time to cash in your winnings but, first, he's considered a raging bull on wall street, why that guy right there, barry bannister beliefs the s&p 500 is on the cusp of 1600. you heard that right. and ethan allen is cliff proofing its stock by offering a special dividend. is this the best use of the company's capital? we'll ask the ceo when we come back. >>> we're halfway through the trading day. next, the island reversals, the breakouts, and breakdowns in pops and drops. plus, they say the dumb money trades in the morning and the smart money trades into the close. so we reveal what that smart money is buying and trading before that final bell tolls when the "halftime report" continues. gecko (clearing throat) thank you, mr. speaker, uh, members of congress. in celebration of over 75 years of our government employees insurance company, or geico...as most of you know members it.congress. ...i propose savings for everyone! i'm talking hundreds here... and furthermore.. newscaster:breaking news. the gecko is demanding free pudding. and political parties that are actual parties!? with cake! and presents! ah, that was good. too bad nobody could hear me. geico. fifteen minutes could save you fifteen percent or more on car insurance. >>> our thesis is that with a pretty big deficit/debt problem ultimately you'll have to unwind some of the stimulus and that would be bad for the market multiples in the interim. >> well, that was one of the street's biggest bears, morgan stanley's adam parker. our next guest has an entirely different opinion and he says stocks are going sharply higher over the next few months regardless of what happens in washington. barry bannister joins us now live. barry, it's nice to see you. >> hi. >> i'd call you a market bull, but i'd be doing you a disservice. you are looking for 1600 in just the next couple of months. how in the world will we get there? >> well, we do need some fiscal clarity. i don't think we can get there without that. right now the central banks have been in the lead around the world and we need the politicians to fall in line. it's taken longer than i thought, though. >> so originally, what, you had 1600 s&p by the end of this year, am i correct, by 2012? >> yeah, the election left a lot of the status quo intact about the house, the senate, and the preside presidency. and obviously we're having negotiations right now so it's taking a little longer. one thing i would do is draw the parallels to japan. if you recall they entered a balance sheet recession in '91. they were growing by '95, '96. due to a tax increase in '97 and you know what's happened to japan since then. we have to be very careful on the policy side. >> we bring you on to make your point, we simply obviously point out the facts based on what your calls have been. let's assume that viewers watching now agree that we're going to get to 1600 in early 2013. what would you suggest that they buy? >> well, keep in mind that the largest earnings shares of the s&p are in financials, energy, materials, industrials, and those sectors would get the rating on growth confidence. one of the things the bears aren't pointing out is that since the s&p down grade of u.s. debt, the s&p is up 200 points and earnings estimates for this year are down by 11, should be the strongest part. >> barry, it's joe. the beginning of 2013, we get to 1600. the question then becomes is that some form of a secular talk? selling at that point? what happens thereafter? >> you know, we've been in a 1200 plus or minus 400 range since the late '90s. this is a secular bear market. we've been through four of them in the past 100 years, the most recent was 1967 to 1982 so, yeah, i'm a little concerned that once we get to a top p/es rerated, earnings growth not that strong, that it will be a little harder to plow ahead from that level. we'll need more growth globally. >> it's good to have you on. thanks for coming on today. we'll have you back soon. >> thanks. >> appreciate having you. barry bannister. forget the target of 1600. it doesn't mean that much to most people but what he suggests to buy financials, energy, materials, industrials, it technology. >> i couldn't agree more. not on the 1600 mark, on what to buy and what would get us there. remember, the s&p rallied about 100 points in a very short amount of time. so if we break above 1425 next level 1450, now we're looking at the 1475 level. if we do get 1500, that's a major if. i think you need a fiscal cliff resolution there. if you get to 1500 to see an additional 100 points from there i think is doable. >> i would have felt better if you said 1475 in six months and 1575 end of the year. yeah, 1600 is great in the first half of 2013, but the concern he has is on the back half of 2013. that's a bigger problem. i think that's the headline. >> up next on "halftime" hold them or fold them? three winning stocks and whether it's time to let them go. plus the ceo of ethan allen weighs in on the decision to offer a special dividend as fiscal cliff worries grow. amerie in charge of their own future. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ thor gets great rewards for his small business! your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics. put it on my spark card. ow. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve great rewards. [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] from investing for the first time... to investing with knowledge. the potential of td ameritrade unlocked. nyse euronext. unlocking the world's potential. to a world of super-connected intelligence. the potential of freescale unlocked. nyse euronext. unlocking the world's potential. >>> good day, everybody. on "power lunch" top of the hour, getting it done. a best-selling author and a top expert on negotiations breaks down the current fiscal cliff talks. is there a method behind what appears to be political madness? in advance of friday's jobs report, a surprising new look about what kind of companies are actually creating new jobs in this economy? we'll have some of the best job creators next hour. and, three things you need to understand about the new facebook messaging announcement. join us on "power." back to scott. >>> we'll see you in about 15 minutes. sometimes it's tough to buy the losers and sell the winners. you know that. let's play a little hold them or fold them, what stocks have made big moves of late. marathon petroleum up more than 78% year to date. joe, hold them or fold them? >> absolutely hold them. you're talking about a mid continent refiner here. secular momentum, clearly a strategy here like rg3 with your redskins, the game has changed and it's changed for years. >> all right. dish network, the stock five-year high, 45% move this year. hold them, fold them? >> i'm folding. i like the cable. not just because of comcast, but i like the cable sector better. very, very competitive. you can tell how competitive it's getting when dish is looking to get into the telephone business and get struck going which the government so far has said no. to me that's a sign if they're looking down the road and don't like the growth aspects, the core business so i would fold. >> and finally intel, the stock is one of the biggest losers this year, down 19%. so if you're unlucky enough to still have this one, do you hold it, fold it? >> if you're still in it like kenny rogers, you hold on to this one. the dividend is north of 4.5%. it's trading on its lows. you've seen recent lows for dell and some of the research in motion, so i think you can get a pop on intel here. >> ethan allen is one of more than 100 companies announcing special dividends this quarter, as the fiscal cliff looms. joining us now is the company's chairman, president and ceo, farooq kathwari. it's great to have you here. how much of the special dividend is directly related to the fiscal cliff? >> i think the timing of it is 100%. >> you did it with cash rather than debt. money is cheap. why? >> well, we have cash. we have -- we run the company in an old-fashioned way especially after the great recession. about $100 million in cash we are maintaining. when the great recession hit us, it really hit us. but in the last two years we have been producing enough cash to pay almost $50 million of our debt, $38 million in capital expenditures and still maintain $100 million so from our perspective it was good for stockholders and good for the government. they're going to get taxes this year which they most probably wouldn't have gotten. >> let me raise another issue. it's good for shareholders, you say, and respectfully, let me push back that there are those who are looking at what larry ellison is pocketing, some $200 million off the special dividend and other dividend maneuvers that oracle is doing. he's going to take home $200 million. you own a lot of stock in the company. how would you respond to the criticism that at the end of the day despite ceos who say all of this is good for shareholders that it's good for big owners of stock like you, you're going to make a lot money, more than $1 million. >> absolutely, because i'm a shareholder. in fact, it's the other way around. most ceos don't want to pay dividends because they don't own stock. i was with some stockholders a couple of weeks back. in fact, they raised the issue i was not thinking of it. they said, you know, you are one of us, why don't you give them cash? i said, yes, it's good fob stockholders. >> why do you think your stock is down 5% or so since the day that you announced the dividend? we've watched more than 100 companies come out. you say they're issuing a special dividend. the stock goes straight up. yours has struggled a bit. is that a pushback to those who would -- or from those who would say there's better use of the cash that you have? why can don't you buyback? if you love your stock so much, buy it back rather than pay a special dividend? >> well, a stock in the last couple of months has gone up 30%. this year it's up about 17%. i think the stock probably -- i don't pay much attention to why it goes down but i think the fact it goes up and, secondly, this whole question about the concern of the economy is out there. so i think that that's an issue. another question of buying the stock back, you know, i took this company private about 20 years back. and we spent almost $500 million in buying the stock back. it was great. it made sense. and today i think we need to make sure we have reasonable out there and we want to make sure that we take care of our other stakeholders. our stockholders and many other individuals makes sense. >> are you optimistic, and this will be my last question, are we going to get a deal in washington? are they going to solve this thing? are they going to rise above? >> you know they have to. and i think that it's not that complicated. running a business like ours, my focus always is increase revenues and manage costs. that is what we have to do, increase revenues and some taxes have to be increased. but then they also have to manage these costs. entitlements, medical, but it's not -- you know, it's simple. it's got to be done both ways. >> i'm going to get you one of these pins. rise above. you'll wear it? >> i will. >> kathwari thanks for coming in. he is, of course, the chairman and president of ceo, as we said, of ethan allen. dr. j., i know you've been boieserous about this very issue. >> about the dividend side of it and i love that he has skin in the game, scott. i mean, all the ceos that actually do have skin in the game through being a shareholder like the rest of us, i salute him for making a prudent use of this capital. i think it's better than buying the shares back at this point because of this looming fiscal cliff and i think all these 103 companies that have done so are addressing exactly that fact, and i do hope that we can get our spending under control like he has in ethan allen. >> all right. good last word on that topic. up next, the case for a euro rally when we come back in about two minutes. [ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account. >>> welcome back to the halftime show. eu finance ministers clashing today over a banking supervision plan. i hate when they do that will renewed arguments mean an end to the euro rally as we know it heading into 2013? ask kathy lean of bk asset management. she is live in new york. kathy, what's the answer? >> i don't think it's going to the end of euro rally but i think give us an opportunity to possibly come in and go long your rose at a lower level. because overall, i think the reduction in tail risk is going to be very supportive of the euro as you go into the new year and if we do get a deal on the fiscal cliff, even if it is a benign deal, may be enough to keep the euro well supported. so i think if we get a dip as a result of the euro finance ministers meeting, we should taken a opportunity to get n >> a fiscal cliff deal, could you have a risk-on scenario, so to speak, the dollar weaker and euro would get some support? >> yes, that's exactly what i'm saying. >> what levels should we be paying attention to in the trade? >> in terms of the trade, eurodollar, if you get buy it around the 130 level, that's good value point with a stop at 129 and a target 15930, 150 this whole euro area finance ministers meeting could be on par the catalyst that takes us lower on the eurodollar. >> kathy, good to talk to you. >> my pleasure. >> "money in motion," that program airing every friday night at 5:30 p.m. eastern, only, of course, on cnbc. >>> the biggest pops and drops in midday trading, joey, big lots with a big pop. >> yeah, ten-cent loss versus a 24-cent loss, double digit short interest for a trade, maybe higher but structurally, not a good company. >> letter x, murv, u.s. steel? >> a nice pop earlier today. announced layoffs earlier in the week, you look right now, they've joint venture down in texas. positive news out of china's pmi. i think the steel does start to rally. >> dr. j, baxter international with a drop r. >> i think long term, scott, a great decision to take out this swedish dialysis k short term, i think the stock could trend down to 62 or even 60 a share so aid hold off on it. >> and weiss garden, on sale today because it is down 10%, issuing promotions, right? >> deja vu all over again after yum last week. yum sales up better, discounted more, the virus not good. the most interesting thing out of their statement was that the ceo came out and said he is worried about the backlash from darden being very visible and cutting back their full-time workers less than 30 hours week so they don't have to pay for obama carism would say that is very, very interesting. watch for other companies to do it. otherwise the cost goes up for these food restaurant chains. >> a pop for puppies. many college students are looking for twice ease stress during final exams. one canadian university has gone to the dogs. starting today, dalhousie university in halifax, nova scotia, is throwing students a bone by providing a puppy room where students can destress among four-legged friends. although the idea may seem barking mad, organizers promise that simply pekt the dogs will help relieve anxiety. >> we need one for the "fast money" guys, petting, with dogs. >> move on. >> no comment. >> let's go somewhere else. >> seem marks help us. >> i'm here, guys have no fear. here's what's coming up next on the cnbc "fast money" show at 5 p.m. eastern. she was the most closely watched analyst at the height of the 1990s tech boom, today, mary meeker's tech predictions moving some of the biggest names. meekers a head lines, the smartphone revolution has just begun. cnbc "fast money" at 5:00 we want to know how you're trading meeker's call on mobile adoption, tweet us your comments, questions tonight. you know, scott, we go through each and every tweet that we receive. >> i know you do and thank you for rescuing us. weiss was giving us too much information about the short hills capital holiday party. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. if you're a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. >>> the good doctor, final sflanchsd potash, pot, big buying of upside calls. >> joseph terranova? >> good note by health terry at goldman sachs, i take the other side, aol lowering price
MSNBC
Dec 7, 2012 3:00pm PST
avoid the fiscal cliff. compared to just 36% who trust republicans in congress. also today speaker boehner said he wouldn't rule out an agreement to raise taxes as part of a fiscal cliff deal. but he also said there's no progress. this is what winning looks like. joining me now, e.j. dionne and thank you both for your time. senator solis, the jobless rate is at a four-year low. that's quite an achievement. >> yes, reverend re. but we still need to do more. in sectors like retail and health care and tourism and hospitality. we need to do more because people are still suffering. we've got to put jobs back in infrastructure and construction and put our teachers. that's why the president is working so hard so we don't go off the fiscal cliff so we keep the most vulnerable people out of harm's way. to pay $2,200. we've got to talk about fairness here and i'm very excited that the public is listening to the message that the president has made very, very clear. >> 146,000 new private sector jobs last month but one of the things that you talk about is the public sector. the president has proposed about $50 billion in infrastructure jobs which would be the public sector which is where a
FOX Business
Dec 1, 2012 12:00am EST
should have told you. none of these are bad ideas. a lot of them are very good ideas. you have to remind these guys come in the middle of all this, in the middle of all this they're talking about more stimulus, 50 billion, maybe 500 billion topic in number, any number, money we don't have. it's likeomists say they will stay about the same. liz: have a great weekend. david: see ya. melissa: i'm melissa francis and here's what is "money" tonight. whatever you to do don't buy this gasoline. aaa issues a rare warning for e-15 ethanol gas saying it could ruin millions of vehicles and void your warranty. is your car at risk? we have details coming up. >>> plus fast-food workers walking off the job demanding higher wages and their own union. i don't know if they realize therare millions of unemployed workers out there. we'll debate it coming up. >>> is fracking the key to u.s. energy independence. a new study says absolutely not. is the controversial outlook right? we'll drill down on that one. even when they say it's not it is always about money melissa: first let's take a look at the day's maet headlines. stocks look exhausted after a week of fiscal cliff fueled volatility. the major indices swayed between positive and negative territory closing the day mixed. the dow eked out three points, three. while closing out the month of november down half a percent. >>> you know the global economy is in trouble when even taco bell and kfc have trouble making money, right? shares of their parent company yum! brands dove nearly 10% today. the company warned fourth quarter sales in china, their single best market, would likely slide. >>> u.s. consumer spending fell for the first time since may. the 0.2% decline in october partially being blamed on the impact of superstorm sandy. why not. >>> starting off tonight, taxes are the talk of the town and have been for daze. seems like much of the conversation isocused on the wealy to get them to pay more. a new study by the tax foundationlips the argument over who really is paying their fair share on its head. the numbers show tax rate paid by individuals in income top 1%, was 23%. all filers in bottom 50%. paid 2%. that is 10 times more. joining me scott hodge. from tax foundation. we have also the founder. sqm management. thanks for joining us. scott, i want to start with you since the numbers are manying from your foundation. what is the average takes rate for our viewers and why did you decide to isolate this metric? >> this is brand new data out of the irs for 2010. the average for all americans is somewhere around 10 or 11%ut for the wealthiest americans, those in the top 1%, those earning over say $370,000 a year, they're paying over 23% of their income in federal income taxes. as you mentioned, the poorest 50% of americans they pay an average 2% of the their income in taxes. but after all that doesn't include about half of all americans who pay no ince taxes whatsoever. that adds up to 58illion americans with zero income taxes. melissa: average tax rate, looking all money make from dividends, everything you could possibly make and you're taking the average of that paid across. so why do people, what is the difference between that for our viewers who don't understand and this tax rate we're always talking about, raising it from 35 to 39% ruffle? >> right. well the tax ce has six different income tax brackets everything from 10% at the bottom to 35% at the top. sohat isifferent than what we call the average tax rate. when you include take account for credits and deductions, which everyone gets to take. that brings down your average tax rate from that marginal rate --. melissa: paying last bit of income. >> right. melissa: bob what do you think about this? >> well, i think the bigger issue higher tax rates slow down the economy and in a slow economy as we're facing now to be raising rates even higher, i can't imagine any economist really supporting that, regardless what is going on the fiscal side. melissa: you're sing this is the entire wrong conversation to be having anyway, talking about taking more money away from individuals and giving it to the govnment is not good for the economy no matter what? >> exactly. particularly when the economy is weak. even keynesian economists will tell you that is not the rightime to raise taxes. >> i don't think so. we have a lot of kensyians are saying there is no demand. government has to make up for the demand that doesn't ext from consumers. that means you have to give them money to go out there and spend, no? >> they wld say you spend but noo say tax at the same time. they would say that will counteract whatever spending you do, the tax increases. i think what you need to do is actually cut spending. at a minimum keep taxes where they are. be betterf you could even reduce them. if you need to raise more revenue do things likes privatizations much better way for the government to get revenue in this type of circumstance. melissa: scott, you make the point that of course the government is going to go out and you know, try to raise taxes on wealthy because they're kind of only ones out there paying taxes. that is the only way to get revenue is get it from the wealthy, right? >> obviously like willie sutton that is where the money is but you have to be extremely careful how you do it because we've looked at the economics and run obama's plan through our economic model and found that for every dollar that it would increase in federal tax revenues it would rrduce gdp by $10. that is a very poor tradeoff as to have higher tax revenues but lower gdp and economic growth. that's not the direction that we want to head. if you're going to increase taxes we should do it through economic growth. that comes through smart tax policy, not dumb tax policy. melissa: but they always say, if you don't, the wealthy won't miss it. they will just pay a little bit more. it is fair their share. it wil help close the gap. how do you respond to that? >> all of that money is locked up into productive activity whether in a business or the stock market or somewhere else so the more that you tax that income, at means there's less investment, there's less for the business. there is less for hiring. it has to come from somewhere. it is not a costless exercise and ultimately that trickles down to workers through lower productivity and lower wages. that is bad forverydy. that means lower standards of living for everybody. melissa: bob, is there mon difference between money in the hands of the government and money in the hands of the private sector. >> certainly the private sector is better productively. melissa: how do you know that? >> how do i know that? you see that in economies where private sector activity do more productive over time than economies with large government sectors. soviet union is obviously a extreme case but even in lesser cases look what is going on in europe right now, a large part of that is because very large government sector there. melissa: scott, we have an enormous deficit. how will we close that if we don't get money from the rich? >> i think there are lots of ways to raise revenue. privatization was just mentioned. asset sales. sell off a lot of governnt businesses. let's tax some unproductive things out there, things not already in the tax code. there are lots of difficult ways you can raise revenues without underpining economic growth. melissa: that was a test. the answer was we'll cut spending but that is okay. thanks for both of you joining us. >>> to an important gas warning today that affect anyone with car older than 2012. that is whole lot of people. e15 is higher blend of ethanol and gasoline. it is epa approved and sold in handful oftates. aaa says don't use it will damage your car engine. that is aaaaying that. at least 10 car companies saying they will not cover any claims of damage due to this fuel, due to e15. it will void your warranty if you use it. here to expla exactly what you need to know is rainshower ren fix of the car coach -- lauren fix. i read this story this morning and i couldn't believe it. this gasoline is out there being so approved by the epa yet you have car company after car cap saying they will not cover fuel related claims, bmw, chrysler, toyota, vw. other car companies says if you use this fuel that is approved and pushed by our government, it is going to void your warranty. ford, hond, kia, mercedes-benz. it will, how is this happening? >> well, the problem is there wasn't a lot of testing done. us in the automotive after-market, i've been testing this stuff for a long time. there is something clled phase separation. there is all kinds of damage to emission systems and fuel systems in engines. first thing you do not want to pump e15 into your car. it is happening because our cuent government is shing this because there is are corn subsidies going on. a lost money changing hands the bottom line is consumers argoing to be hurt badly if you use this stuff. ictually have proof that it damages fuel lines, emission systems and engines. melissa: why? what i in it that makes it so bad for your car? it is great for the environment i would assume? >> well, it is made from corn. what is happening a lot of farmers are saying you know what? we'll start producing corn rather than other products. that is why your groceries gotten soo expensive. on the other hand what this is very highly corrosive, so corrosive it has to be distributed to gas stations in stainless steel tanks which are hauled by diesel vehicles of all things. but when merged with the gasoline in your gas pump, wherever you pumpour gas into the vehicle that's when they merge the two gether. what happens is, it is so bad something called phase separation where the ethanol heavier goes to the bottom of the tank. now your vehicle, whether running on e-10 at every gas station ich is mandatory or e15 which they would love to shove down our thoughts. what happens, starts off with separation. your gas tank is drying ethanol. so it destroys fuel systems. i have proof because i talk to companies that manufacture fuel lines. they have brand new vehicles with rotted out fuel systems. they have to produce product they shouldn't be. emission systems when the ethanol is gone, the gasoline is being drawn. hear is the interesting part. it is made three octane levels lower. what that means 87 octane is really 84 octane. that damages your engine because it debt nats -- debt nats. these are serious factors. i really wish before they do this short sight he hadly they look at big picture. melissa: this is very confusing. i covered this industry for a long time. we were looking at the story in the meaning what a difference between e85 and e15. i don't understand different fuels. i can't imagine for the average person pulling into the gas station and s these things, so tell me, e85 is blend only used in flex-fuel vehicles, right? >> exactly. so if you have a flex-fuel vehicle, no matter what manufacturer you purchased it from e85 is totally fine. you can run e15. melissa: you can? >> e 15 wii is 15% ethanol and e85 which is 85% ethanol but and 15% gasoline. for manufacturers say you use it void the warranty, it is important to know it actually will damage your vehicle. they know it. it actually destroys gaskets too because of the corrosiveness of ethanol on its own. so when you are looking at, i wi save a few pennies. i buy the e15, in reality it will cost you hundreds possibly thousands of dollars down the road because you have to pay for the repairs. no one will cover that. melissa: can't blame it on evil peoplewho hate the environment. this is aaa out there issuing the warning. you can't say this is conspiracy of some type against farmers, against the fuel industry, whatever it is. it is aaa come out. what is the epa's response to all this at this time? >> well the epa claims that they have done all this testing and it is impossible to do years of testing in months. they said they have done all the testing and claim there is no difference. hear is the other difference that will affect your pocketbook the truth is aaa is trying to help people. i don't work for aaa. i work for aol auto we're totally opposing to each her. the fact when you're looking at cost of what costs you, less than one-third energy per gallon of gasoline that has ethanol in it than regular gasoline didn't have ethanol in it. what does that mean to you?% filling up at pump more often and pay for the damages that happen to your engine. melissa: if you look at the it, it is true, they dormnalize how many miles you will get out of the gas so you see what it really costs but deceptive when you see it up there, pulling into the gas station the price per gallon doesn't get you the same distance so that is not a fair comparison they say itis cheaper. >> right. melissa: thanks for coming on debunking a lot of different myths. important informion for people that mght accidentally void their warranty and wreck their car. thank you. >>> next on "money", fast-food workers go on strike to try to get their wages supersized. with millions of people out of work this holiday season, poor timing could ruin their case. we'll debate it. >>> is fracking the key to u.s. energy independence? a new study says absolutely not. one environmentalist is here to challenge all that. more money and a few big macs coming up on the other side the break. ♪ . ♪ . melissa: just a week after wwl-mart employees walked off the job demanding higher paid and the right to form a union now fast-food workers in new york city are doing the exact same thing. it startedat the crack of dawn yesterday and culminated in a rally with hundreds of workers protesting theer at times square but here's the question. is this really the right time to be doing this with the holidays approaching? what about the millions of americans that currently have no job at all? here to discuss both sides are democratic strategist arlene maxwell and republican strategist ford o'connell. i will let you start. these folks are out there protesting. they're not make a lot of money. a lot of people are out of work. what is your take? >> going hungry and starving are two different things, right? these people are making $7.25 an hour which is, barely $300 every week if you're working full-time. a lot of them are limited and not able to even work full time. you shouldn't be working full time and have to live in a homeless shelter as one person interviewed yesterday said. you can't afford to feed your family. you need enough money for the basic necessities. melissa: ford, you know it is hard to imagine a lot of these people are living in a homeless shelter but at the same time, you know, making $15,000 a year is not enough to live on. that is what minimum wage works out to if you work 40 hours a week. i think these people are working multiple jobs. there is multiple people in the family working. so i mean it just, at end of the day it isot a lot of money. how do you respond to that. >> my heart goes out to them. i understand their frustration but not only is this right time they're not targeting the right folks. most of these fast-food restaurants are individually owned and they're small business owners who are in compliance with the law and providing jobs. look, most small, most restaurants basical net about $88,000 a year. and on to be of that y a load fee to be part of franchise which comes out to $450,000. it takes folks about five years just to break even on this investment. in my opinion they're small business owners providing a public good and if the protesters want to take it up with someone take it up with the state government or national headquarters. you're targeting the wrong folks. melissa: there are some good points in there. the problem that people own the restaurants, franchise owners are not making a mint. they're forced to raise the minimum wage not like, where is the money going to come from? they will have fewer workers working there or raise the price of the food. maybe the answ is not to have fast-food and to only have expensive food. no matter how you cut it the money has to come from somewhere? >> i think about the ceo's and people in the corporate headquarters and profits have been gone up for wendy he is and kfc, 50%, mcdonald's 130%. these people are making money hand over fist. melissa: but tse are franchise owners. >> franchise owners providing jobs. >> they can give back to the workers. they don't need to make millions and millions while workers are starving. they need labor to become profitable. melissa: ford, do you buy that argument? no one at mcdonald's making millions and millions of dollars. you have the franchise owners, raise the minimum wage, say that is true. raise the minimum wage, they will raise price of cheeseburger. >> that is exactly right. they will pass onto the consumer. these are low bear remember entry jobs i'm not sure a mac job is supposed to be a career. the fact you work flex hours you spud send spending spare ti working on your skills going to community college or exercise more personal responsibility here. melissa: go ahead. >> what money are you going to community college? how are you paying tuition when you can barely afford food, rent, transportation. >> you can afford community college. melissa: that is whole different discussion. that is why we have the student loan crisis. >> get the entry level job you want to strive and do better and have a career. you can't afford to do anything. can't afford transportation and child care necessary to get to the job. melissa: what about the idea, if you raise the wage there will be fewer people working at mcdonald's. is it better to have more people working than more people on unemployment line? >> i don't know the exact answer. i don't know if that is the solution. i do know the people are not making enough. mcdonald can afford to pay them more. melissa: real quick. >> raise the wage bottom line pass on consumer. if consumer cuts back they close the door and we'll not have jobs. it is that simple. melissa: we'll agree to disagree. i hope you both come back. >>> coming up on "mone a new study torches the fracking boom. saying it is no road to u.s. independence. one environmentalist is saying it is dead wrong. gop version of blood vessel over the president obama's fiscal cliff proposal. is it that much of a raw deal as they claim? we'll break it down. do you ever have too much money or too many big macs? ♪ ♪ . melissa: the idea of u.s. energy independence may be music to your ears but is fracking the way toet there? a new report fm the food and water watch, says if that i what you think, think again. they say the real answer is investing in renewable energy because increasing prucon of natural gas will only continue dependence on fossil fuels. we have a the environmental thast that is big defender of fracking. he tells us why it is a key to the energy independence. thanks for coming back on the show. >> thank you for having me back. melissa: what do you think about fracking is evil? are you convinced? >> no. they're making two different claims. one is energy independence essentially we're more robust against disruptions from our supply. there are two ways to think about it. if you're worried about disruptions, go to coal that is not what anyone is suggesting. instead we should go for cheap gas. even then if you get disruptions it will be much less disruptive to your economy. melissa: they're saying it is a false claim to say that we have a 100 years worth of natural gas stored away if we only unleash it through acking. number one they're saying overestimation of the actual deposits. in truth it is usually underestimation. regardless, they think it is overestimation. if we really going for it the way we are going to that means it is only 50 years. >> yeah. we've been making these kinds of studies for almost 100 years. when you look how much is there, as you pointed out, you think there is way less than what is really there when you start looking. sure, we're going to use more and more of that energy. we'll use more and more gas because it is so cheap. that means there will be less than what people originally say so. maybe it is not 100 but maybit goes to 50 but we'll find a lot more and we'll have much more technology which will make it likly 100 or even more. but the ultimate point is it takes away from green energy. that is what they're really annoyed about. we don't invest in solar and wind and all the other stuff. melissa: it might, right? >> absolutely. right now, we're, essentially investing in solar and wind because we have hu government subsidies across the industrialized world. melissa: right. >> but thais not sustainable. nobody can actually afford that. germany is one of the leaders basically had to cut back dramatically because they can't afford it when it started counting. melissa: they say every energy industry at beginning needs to be propped up by the govement until it is viable then it is viable. way we started everything else. why is that wrong? >> the problem we've been saying that for 30 or 40 years and it hasn't really happened. the point here gas actually, and fracked gas offers the opportunity tout carbon emissions dramatically. melissa: how is that possible? >> fundamentally gas emits 40% less than coal for the same amount of energy. and so you produce most of your energy in the u.s. with coal. now you're moving towards gas. that is a great tng for the environment. actually, you have cut twice as much as what everyone else in the world including the kyoto protocol and all the e.u. instead of what the e.u. is paying 20, $30 billion a year to do that, you're making $100 billion a year. that is much better proposition. melissa: is all the fracking distracting us from the idea of developing these other sources of renewable energy? >> no. i think it is buying us time because eventually we will be switching to wind and solar and all these other green technologies once they become sufficiently cheap but gas provides us that bridge for a couple of decades, we can actually use gas instead of coal. we can be much cleaner. they're right it is not a clean fuel but it is a much eaner fuel. that means we can get to a point where we will eventually transition to green energy. so it is actually a plus plus. melissa: all right. i think they would be really miffed to hear you say that. i'm sure they're watching. i'm sure they love the show. thanks so much for coming on. >> time for today's fuel gauge report. oil rose more than 1% on the last day of trading in november. fuel prices for the month climbed 3%. interior department will sell the first competitive leases for offshore wind farms. the lease areas cover 430 square miles of the coast of rhode island, massachusetts and virginia. the lease sales are scheduled to take place next year. >>> the u.s. army corps of engineers says it will speed up measures to keep the mississippi river open to barge traffic. lingering effects from this summer's drought are bringing water levels to dangerously low levels, threatening to halt commercial traffic. >>> western libya's biggest oil refinery restarted operations. protests shut down the refinery yesterday. that is the second time that happened this month. the plant refines up to 120,000 barrels of crude per day. >>> president obama's fiscal cliff plan has fiscal hawks raging perhaps none more than the man on your screen right now. is the president's plan truly that bad? look he is throwing away money. don't do that. i will come take it. >> the president is. melissa: oh, right. okay. don't throw away the money. that is jonathan hoenig. he is coming up next. >>> plus the newest move to stop hundreds of millions of dollars of gold coming into iran every month. we'll tell you how. "piles of money" in that trashcan, i'm going to get it but no gold coming up. ♪ . >> there's a stalemate. let's not kid ourselves. melissa: i feel gooood about that. that wa house speaker john boehner today putting to rest the idea that a fiscal cliff deal is on its way. some angry lawmakers are now saying the last three weeks have been a complete waste and that president obama's new detailed proposal is a total non-starter. hedge fund manager jonathan hoenig agrees. he joins us to tell us why he thinks the president's plan rests entirely punishing the minority, that is the rich. thanks for having you back on the show. >> hello, melissa. melissa: this is depressing topic you will make it light and happy for us somehow. >> there is nothing happy about wealth destruction that is exactly what president is doing. you raised a very important point. why is it the president's plan to fix the economic calamity specifically reinvolves hurting minority, as you point out the so-called rich? redistribution is once again the center of his proposal. it is not only immoral but impractical as well. we're talking about 1.6 dro trillion coming out of the economy, coming out of invests, not being put into new jobs and new businesses being sent to washington instead. melissa: it is not really in the spirit of making a deal when you come out and say, i will double the amount of tax increas that i said i was looking for, the amount of revenue. iwill double what that is. by the way i will add in spending. republicans you can just suck it. that is basically. people just, everyone just sort of flipped out. >> you're right. what kind of a proposal or compromise is this? new programs, $50 million on mortgages, billion dollars on mortgage assistance and infrastructure, make-work programs. melissa: yeah. >> this notion to eliminate the debt limit, melissa, essentially clearing the way for unlimited growth of government. i've got to tell you i think that is what the president believes. melissa: i do too. >> yeah. he always believed in my opinion that government spending creates wealth. so of course the more money the government can get the more wealth in thinks mind can be created certainly last four years have shown us not the case. melissa: maybe we're wrong? is there any chance that is true and this is the path to prosperity and everything will be okay? no, huh? what do you think? >> history does not play that out, melissa. the thing that is needed of course is to stop the spending. the problem is, not that we don't have enough taxes. we have too much spending. it is pretty ironic that the president's proposal has no net spending cuts. if spending is the problem why does the proposal have no new spending cuts? we need more than anything is economic freedom. that is nowhere on the president's, meaning on the left's docket atall. melissa: if we all ran our households like this, so the bills are rolling in and you can not possibly pay them and you're facing this date when you know for sure you can't pay your bills, not only wl you get thrown out of house but get thrown off a cliff. instead of cutting back onon spending and saying, guys, listen we've got to really tighten our belts instead you say we'll cut up the credit card and get rid of the debt limit and we'll spend even more. i have mean it makes, none ofus would run our families like this. >> yeah i think unfortunately the government has the guns so they have the ability to look around the count and say, who do i want to make a sacrifice? who will take the hit for so-called greater good that is continuing this disasterous entitlement state? government in my opinion needs to make sacrifices across the board. unfortunately again the present's program seems to go back to that old chestnut, tax the rich and keep spending in washington, d.c.. meliss even that, even if they have all the gs in the world and come and confiscate all the wealth from the top% it doesn't close the gap. if they get the tax increases that they want on the top two tax brackets is only brings in enough revenue to run the government for a week and a half. this whole thing about getting wealthy to pay their fair share so we can pay our bills is a false argument any way because i doesn't come close to solving the problem. >> the math, you're right, the math does not add up in the least bit. you alluded to it a little bit, melissa. there is scuttlebutt in washington a direct wealth tax might be next on the docket. there is that sense, anything goes. i menti also specificall i am a investor. i'm a hedge fund manager. this notion of taxing capital gains and dividends, we all want wealth, but when you tax capital gains and dividends like taxes oxygen. taxing exact wealth we want to create not just for the rich 1% but for the country as greater hold. melissa: all you can do is buy gold to hide i it uder yo bed. god forbid you make a buck. jonathan i want the ashcan and cash in it i will get it after the show. >> i going to buy your book with it. melissa: fantastic. perfect. >>> up next yet another round of sanctions to hit iran where it counts. this time going right for the heart of its economy and its gold. we're going to explain that. at the eed of the day it is all about money. ♪ . man: constant tingling in my toes. woman: i had double vision. woman: they said, "you have multiple sclerosis." man: i kind of had to get a grasp on reality. man: i had to adapt and change very rapidly. woman: i had to learn how to driveith my hands -- yeah, that was interesting. man: a symptom may cause you not to be able to do that anymore, and at one point, i was able to do any of those. man: since i've been cycling, it's definitely helped my walking. woman: it's a fantastic opportunity to be working together with a common goal of curing ms, and sharing is the key. he ♪ . melissa: talk about going for the gold. that is exactly what is happening with a new round of u.s. sanctions against iran approved today by an overwhelming senate majority. it is an effort to put an end to iran's gas for gold trade with turkey. that is one of the stories we were one of the first to report on "money." stopping hundreds of millions of dollars of gold going to iran each month could add a crippling new twist to the economy. here to discuss the impact. michael rubin, iranian expert used to work at the pentagon. now work at the american enterprise institute. thanks for coming on the show. >> thanks for having me. melissa: do you think they will be successl in this? do you think sancons aimed at ending flow of gold into iran will really work first of all? >> sanctions itself isn't going to reverse the determination of iran to, get a nuclear weapons capability. but what we're doing is applying increasingly amounts of pressure on iran and about a year ago t senate voted 100-0 to impose banking sanctions on iran and there is very little from which we can get such bipartisan unty. what happens is iran started sending oil, sending gas to turkey in exchange for gold and so what the cop guess is doing now, again with the unanimous vote, the senate, that is, is to try to plug this last hole. if precedent is to be believed it will increase pressure a huge amount. melissa: but you know turkey wants that natural gas. that is why they're paying in gold. so i mean how realistic is it that we can actually stop them from doing this, from buying it and giving them gold? >> certainly iran isn't the ooly country in the world which sells oil and which sells gas. what we need to be doing is encouraging turkey it look elsewhere to purchase its gas. the whole reason why there have been waivers on the previous rounds of sanions have been to give countries which are making a good-faith effort to untangle their finances from iran the ability to do so and find another partner. almost every other country has pulled away from iran with the exception of turkey which has been basically cheating. now the sanctions aren't going to work unless there is unity and the alternative to sanctions working would be far worse, not only for the united states and the western economies but for security in the region. messa: but problem is iran has a massive amount of natural gas. they desperately need the money. they need to fund their programs. they're being choked by the sanctions. so they're going to sell it to turkey at whatever below market price. that is the same thing they have been doing with oil. turkey desperately needs it. they are their neighbor. it is right there. it seems like the economics drive that situation and we would have to basically pay turkey to not take that gas? >> well, ultimately what we're doing is what we did with germany, what we did with japan, trying to convince them that there's a better way to do this and that it is in their financial interests not to be conducting this trade with iran. melissa: so only way we would do that is giving them money or subsidizing natural gas for turkey coming from somewhere else. >> not at all. melissa: go ahead. >> what we're trying to do is apply coercion. we're trying to sanction and make illegal the trade and if we do that, turkey can choose between doing business with iran and doing business with the rest of the world rather than acting like a predator and trying to take advantage when all the other countries pu back from iran. melissa: yeah. >> remember, should there be a military conflict with iran the effect on the turkish economy will be far more deleterious than taking united front now. melissa: tha a great point. michael, thanks so much for coming on. >> thank you. melissa: next on "money", forget music, it is all money to artists ears. forbes reveals the highest paid musician in the world. you will be surprised who it is. we have details who is dancing to $100 million beat. you can never have too much money. ♪ . it will and in and in >> celebrities and musicians, those blowing all the money, time after time committee would hear about them going broke after they made all this money now. they are making the right decisions. they are making more money, you can look at ashtn kutcher who is in a fight and over all this money, he made a lot of smart decisions and he made a lot of money. of partying and womanizing. >> yes, this is absolutely fantastic. you did the right thing. melissa: a kansas city businessman who prefers to be nameless is giving away $100,000 this season. he hopes to give away all of this money before the holiday season ends. he went to a relief center where they were working with hurricane sandy victims and he gave the money as well. it is such a touching story. >> it is a beautiful story. >> it is a wonderful holiday stor it is great o see a real-life hero like that. i love that he wants to give his money away before he dies. how generous of heart and spirit as that. >> he doesn't want us to know who he is, right? it's not about publicity, he's doing it out of the kindness of his heart. >> i gave out 10 singles on the train -- does that count? melissa: yes, it does count. >> they had to do something for it, they were dancing and everything else we want okay, you lost me. talk about a flip-flop. this self-proclaimed romney supporter was paid $5000 by someone on ebay to get the romney-ryan logo tattooed on his face. yikes. after insisting that hewould never regret it. he now wants to get it removed, claiming that mitt romney was a sore loser after the election. who do you guys think the sore losers? >> i have one line for this, you cannot fix stupid. [laughter] this guy is an idiot. why would you have a tattoo like that? melissa: provided you have political slogan on your face? >> consider the source. if one of his behaviors is flip-flopping -- melissa: ep $5000. >> i think it is ludicrous. the guy, i gave him back the money that he got off of ebay. he didn't put those into the bargain. secondly, i think you ought to have to pay for it. my mother always told me that you made your bed and you have to lie in it. >> that is a heck of a bed to make. melissa: all right, if you you want to know the secret to happy marriage? apparently you have to make sure that the husband gets along with the in-laws. if the husband feels close to the mosque, the chance of divorce is 20% lower than average print when the wife reported being closer to in-laws, the risk of divorce was 20% higher. i don't understand that. [talking over each other] vmax i love your parents. they are wonderful people. don't we all love our in-laws? [laughter] >> it is sort of true. the family seems to migrate to the wife's side of the family. melissa: i am close to my mother-in-law. >>ow you are in danger. melissa: yes, now it's crazy. >> it depends on whether she is a mettler are not. melissa: tom sullivan has a few words of wisdom for us on the fiscal cliff. >> i can't believe the hype surrounding the fiscal cliff. this is a mess created by congress. we are asking the same people to clean up this mess and all the others that we keep creating. you know the numbers. congress is spending a trillion dollars more each year than with the treasury brings in. the tax the rich idea brings in about $100 billion. that leaves us still at about 900 billion short of revenues. then what? welcome this past week i saw three balloons. one was to reduce or eliminate the mortgage deduction. other was deductions for attorneys, and the third was to figure out some way to get attacks on your 401k. i bet you that the fuel tax deduction, but that goes away as well. meaning that yr take-home pay in january will be less. don't be shocked. do youthink they would stop
FOX Business
Nov 30, 2012 5:00pm EST
president obama's fiscal cliff proposal. is it that much of a raw deal as they claim? we'll break it down. do you ever have too much money or too many big macs? ♪ it's a new day. if you're a man with low testosterone, you should know that axiron is here. the on underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied asnexpected signs of puberty in chiren or changes in body hair or increased acnen women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or bast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; problems breathing while sleepi; and blood clots in the legs. common side effects include skin redness or irritation where applied, i
FOX Business
Nov 30, 2012 4:00pm EST
increases from the fiscal cliff. look on your screen. milk prices. could they double if we fail to reach a deal? we're live on a farm we details on that possibility >> i'm sandra smith with your fox business brief. stocks spent the day drifting between gains and losses as investors focused their attention on washington and the fiscal cliff negotiations. amr looking for more time to submit a bankruptcy restructuring plan. the airline along with its creditors has filed a request in a manhattan bankruptcy court to extend its exclusive right deadline to march 11th. earlier this year amr said it would prefer to exit as a stand-alone company but is discussing merger options. >>> long island power authority chairman howard steinberg has reportedly resigned from his post effective immediately. that is according to news day. steinberg's resignation is a latest in string of departures following the criticism of the utility's company performance in the wake of superstorm sandy. that is the latest from the fox business network, giving you the power to prosper. having you ship my gifts couldn't be easier. well, ha
CNN
Dec 4, 2012 4:00pm PST
>> a little bit too much. comes with the territory. >> i guess it does. >> remember, you can always follow what's going on in the situation room. we're on twitter. you can tweet me at wolf blitzer. >> you can tweet me at kate bolduan. >> and you want to spell kate bolduan? >> no, i don't, because people know. they can go on the google. >> it's not the usual spelling. >> knots not the typical spelling. >> thanks for watching. aaron burnet "outfront" starts right now. >>> "outfront" tonight, our lawmakers celebrate the holidays with a tree lighting, but they still can't see the light when it comes to the fiscal cliff. 28 days to go. what will it take to get a deal? >>> plus, the stern warning for syria from nato. the use of chemical weapons will bring an immediate reaction from the international community. we ask our panel if the united states will go to war. >>> and a new hollywood movie about the hunt for osama bin laden sparks oscar buzz and outrage. questions over just how much confidential information the film makers had access to. an "outfront" investigation. let's go "outfront." ♪ >>> good evening, everyone, i'm erin burnett. "outfront" tonight, let there be light. finally, some bulbs turned on in washington this evening. well, on the congressional christmas tree, that is. pretty beautiful. lights, love, camaraderie, song. but while our lawmakers took some time to celebrate together, they still weren't showing any spark when it came to negotiating a deal to avoid the fiscal cliff, which is the christmas present the country needs. today we heard president obama's response to the proposal that house speaker john boehner put on the table yesterday. >> the speaker's proposal right now is still out of balance. >> of out of balance. kind of similar to what republicans said last week when the president sent over his terms. so now what? will they sit down and talk it through? well, not according to at least one senior republican aide who told cnn today, no conversations today, no e-mails, tweets, carrier pigeons. as for boehner and obama, they actually did see each other in person at the white house holiday party last night in black tie. while other lawmakers waited in line to get the photo with the president, multiple sources from both sides of the aisle tell cnn that boehner wasn't among them. so much for holiday cheer. we have this picture. we're wait fworg the day there's a fiscal cliff. there wasn't total silence in washington today. senate majority leader harry reid spoke up. but in his case, in the form of a swipe. >> i sympathyize with john boehner. the key party has a firm grip on the republican party, and that's obvious, what's happened this morning here in washington. >> reporter: that disconnect in the gop was in the spotlight today. jim demint spoke out against boehner's proposal to the president. >> republicans should not be conceding that the federal government needs more money, negotiating with ourselves, and treating the president's proposal like it's serious. >> very critical of john boehner. and demint's press release aimed squarely at john boehner. $800 billion tax hike will destroy jobs, allow washington to spend more. as you all know, john boehner put an $800 billion tax hike as a center of his proposal. so john boehner got rejected from the white house, which wants another $800 billion on top of that in tax hikes and then rejected by the right wing of his own party which wants absolutely no tax hikes at all. so unlike harry reid, i actually feel genuine sympathy for john boehner. so kudos, speaker, for showing deserters or desenters who is boss. boehner stripped house members who opposed key committee assignments today. and earlier i spoke with one republican leader in the house who himself has been out of step with boehner in recent days. deputy whip congressman tom cole of oklahoma. he said the gop should agree to obama's proposal to extend bush tax rates for households that make less than $250,000. and they should do that deal right now, deal with the rest later. boehner said no way. and then tom cole said boehner should not offer a counterproposal to the fiscal cliff deal the president presented. boehner offered a proposal yesterday. i asked cole if he's frustrated with john boehner. >> no, not in the least. look, i support the speaker. and we're actually not very far apart on anything. and, you know, at the end of the day, he's going to negotiate a deal. it will probably be a challenging vote for a lot of people. i always support him. i would expect i will again and try and persuade others. just to be clear, i'm not for raising taxes on anybody. i think it's a mistake. i think all republicans believe that. however, you have to recognize the reality that at the end of the month, tax rates for every american that pays income tax are going to go up. so there is an area that we do agree with the president on. that is 98% of the american people, getting about 80% of this tax cut shouldn't have their taxes raised. so my suggestion -- it was delivered, by the way, in private and leaked and put in public. but that's fine. i mean, it's certainly what i said. my suggestion was let's take the one area that we agree and take it off the table. >> and -- but just to be clear, though, you actually think -- because this is when i saw your comment what i was so curious about, just from a negotiating standpoint. we had the super committee that failed, now we have the fiscal cliff, right? and if those sorts of deadlines aren't enough to get a deal, if you actually were -- were going to break with your own party or say go ahead, we'll extend them for the middle class, do you actually think that you would be able to negotiate a deal where they didn't go up on the top 2% at the beginning of the year? >> you might be able to negotiate that deal. again, i think a lot of people misunderstand, you know, what's happening with the 98%. number one, i don't think you ever ought to use the american people as, quote, leverage in a debate. that's a mistake. you don't treat people that way. second, much more importantly, it's not our leverage. it's the democrats' leverage. they're the ones going around, hollering, oh my goodness, taxes are going to go up on everybody unless we do something. let's just take that leverage away from them. our real leverage are the spending cuts which democrats don't want to make, and ultimately further on down the debt ceiling. >> so let me ask you though, today nancy pelosi filed a petition to try to force a house vote later this month on extending the bush tax cuts for families that make under $250,000 a year. as you just said, you stand by your support of that position. but you've said you wouldn't support the petition by nancy pelosi. >> well, i'd like to ask leader pelosi how many discharged petitions she supported when she was speaker. i mean, the reality -- that's a little game. it's not going to be helpful. it's not going to get anything done. and no, i would never sign a discharge petition against my own speaker or my own conference. the way you do things is to negotiate. and frankly, the negotiation is going to largely involve the president of the united states and the speaker of the house of representatives. with all due respect to the other players, they're honestly less central to this. and if they can come to a deal, then i think we can avoid the fiscal cliff. >> and do you think that -- somebody put this idea out here. and this idea is really vile. i'll use the right word. i think you'll agree. here's the idea. let's go off the cliff, just for purely political reasons, nothing happens immediately, and then, you know, you all come back in session in early january, and you give the middle class a tax cut, and you give the wealthy a tax cut, they'll pay more than they're paying now but less than $39.6. is that possibly what both sides are angling to? >> you use the word vile and i'll echo that word. i think going over the cliff is a sdasster. i think social leaders negotiate the best deal they possibly can, and let's try and get this done. i would not be for playing a game of chicken, if you will, or trying to fool the american people who are pretty dad gum smart when it comes to these sorts of things. >> do you fear the right wing of your own party, a wing that says any revenue, as you heard jim demint say, no revenue, not part of the deal. do you think that's going to be what hurts your party and makes you feel on this? >> these are my friends and i agree with on the issues. but look, rates are going up if we don't act. some people act as if we can just hold tight and nothing will happen. the opposite is true. we have to react to prevent a massive tax hike. but with all due respect to those people that say we're putting revenue on the table, the american people did that when they elected, you know, the president and a democratic senate again. again, they have to agree to a deal or tax rates on everybody go up. i think we should do everything we can to avoid that for as many people as we possibly can. >> so far, four house gop members, as we said, john boehner has booted them from key committees for going against leadership. you're obviously the deputy whip. you are part of leadership. you have challenged john boehner. i mean, what you put out there, it may sound -- may sound very normal and calm and compromise-filled to many. but perhaps to him, it's a little bit of a slap in the face. have you talked to him about it directly? >> yeah, of course. i mean, look, i deal with the speaker on a regular basis. and he knows, look, i'm never going to undercut him and he knows when the tough votes come, and they're going to come, that i'll be there to try and support him and help him. so he's not going to scold me because i offered in private, you know, my advice that was solicited and then when it was leaked actually defended in public. i don't think he would expect me to do anything else. >> well, it's good. it's good you stand by what you said. and i know we have to applaud when anyone chooses to do that in washington, sir. thank you so much. appreciate your time, congressman cole. >> thank you, erin. >>> a man who stood by what he said, even though it flew in the face of what others like grover norquist are most afraid. grover norquist, a lot of influence on tom cole, the man behind the anti tax pledge, "outfront." >>> and nato warns syria any use of chemical weapons will bring international response. what does that mean? that means the united states. what will the president decide to do. >>> and the president heading into his second term. one report says he has his sights set on "vogue" editor. and may have surface pores where bacteria can grow and multiply. polident is specifically designed to clean dentures daily. its unique micro-clean formula kills 99.9% of odor causing bacteria and helps dissolve stains, cleaning in a better way than brushing with toothpaste. that's why i recommend using polident. [ male announcer ] polident. cleaner, fresher, brighter every day. [ ding! ] losing your chex mix too easily? time to deploy the boring-potato chip decoy bag. then no one will want to steal the deliciousness. [ male announcer ] with a variety of tastes and textures, only chex mix is a bag of interesting. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ together for your future. sfx- "sounds of african drum and flute" look who's back. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling around. yeah, you're the king of the jungle. have you thought about going vegan carl? hahaha!! you know folks who save hundreds of dollars by switching to geico sure are happy. how happy are they jimmy? happier than antelope with night-vision goggles. nice! get happy. get geico. fifteen minutes could save you fifteen percent or more. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. plays a key role throughout our lives. one a day women's 50+ is a complete multivitamin designed for women's health concerns as we age. it has 7 antioxidants to support cell health. one a day 50+. or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use. it's the ultimate combination of speed, small size, and low-cost printing. >>> our second story "outfront," a stern warning to syria. the use of chemical weapons is unacceptable. nato says the use of these weapons of mass destruction will be met with an immediate reaction from the international community. former british prime minister and middle east envoy tony blair had the same message for bashar al assad earlier today with season dad o'brien on "starting point." >> if there was any sense at all that assad was going to use chemical weapons or did use chemical weapons against his people, i would expect a tough response that would be military. >> the question tonight is what role will the united states play in such a quote, unquote, military response? "outfront" tonight, peter brooks, former deputy assistant secretary of defense under the bush administration, and colonel cedrick layton, former member of the joint staff. good to see both of you. colonel layton, let me start with you. if the united states were to get involved at this point, what would a serious u.s. military intervention in syria look like? >> it would probably, erin, start out with a no fly zone type operation, similar to what we had during operation southern watch, which -- and northern watch, which basically governed the skies over those parts of iraq after the first gulf war. that would be the first step. however, in order to secure things like chemical weapons, you would definitely have to look at using ground troops. it may not be u.s. ground troops, but the possibilities certainly exist that they might be used. >> of ground troops which i think is the key words for all viewers out there. ground troops is a very different sort of concept than what many people thought about what would happen in syria. and peter, i guess it comes down to this, about whether bashar al assad would use chemical weapons. the rebels seem to be gaining ground. the chemical weapons are horrific. would bashar al assad use them? >> it's an important question. i'm wondering, erin, whether this was a regime decision. you know, this activity surrounding chemical weapons, or they saw a local commander, perhaps, doing some things. and the international community wanted to send a message to everybody, including the assad regime, saying that one of your local commanders may be getting out of line here and may use these weapons. you better crack down on it. so it's not quite clear. the government knows more than we do but outside, it's not quite clear exactly what they were trying to get at here. obviously, stop the use of chemical weapons, but who was going to use them? what their intent was, we still don't know that outside. >> right. and certainly he i would imagine how secure they are considering that rebels have links to al qaeda or extremist groups. there's lots of risks. and sources are saying that his mood may be at this point, look, i'm going to end up being killed anyway. if i try to leave, i'm going to be killed by my own people and they sort of paint the picture of a very desperate man with nothing to lose. does that scare you when you start to think about chemical weapons? >> absolutely. chemical weapons are the worst kind of weapons. you look at lethality rates of almost 100% with the nerve agents like sayerin and vx, which they have. and when you look at somebody who is cornered, they're going to act just like a rat would act, and they would go after the people that are attacking them. and they will do whatever they can to either take many people with them or lash out at the forces that they perceive to be occupying their country. so it's a very dangerous situation, erin. >> peter, i'm curious, when you talk about the depth of syria's chemical weapons program, they do have some of the most advanced chemical warfare capabilities. mustard gas, sarin, possibly the vx nerve agent. i'm curious as to how confident we are in what they have. i mean, a lot of people may think about this and harken back to iraq and weapons of mass destruction. do we really know what syria has? >> well, if you look at syria, most people consider it to be a chemical weapon super power. it has the largest chemical weapons arsenal in the middle east, maybe in the world. i think the level of certainty is pretty high regarding this. this -- and i think there's obviously the signals that are coming out, the intelligence community must feel they really do have them. now, once again, erin, you know, intelligence -- you know, we're not i don't mean nichent. we work in an imperfect world, but i think the level of certainty is high. and if they're used, you're certainly going to know. >> colonel layton, the civil war has gone on for 21 months, 40,000 people estimated to be killed. tony blair used that number today. the united states, it appeared, it learned a lesson from iraq, afghanistan and libya saying we're going to sit this one out. it's another country's civil war. we're going to sit it out. do you think intervention would have saved tens of thousands of lives or not? >> i believe it would have, erin. and intervention is always a very tough call to make in these situations and syria is anneth know graphic and demographic situation is a very, very complex one. so we would have gotten into a very difficult situation. but a type of intervention using perhaps local troops from the region might have been something that could have worked early on. but 40,000 people is 40,000 people too many. and that is a real, real problem, not only for the people that are affected directly by it, but also for the entire middle east. >> peter, final question to you. do you think bashar al assad will live through this? >> that's interesting. if you look at saddam hussein or moammar gadhafi, i think he can get out of the country. i think what they really need to worry about is row many i can't at the end of the cold war, going before the international criminal court, being like the fellows from former yugoslavia. i think that's what really worries them. but i think he definitely can get out of the country, even if he used chemical questions. it's really an open question. i'm not sure he's going to stay to the bitter end. >> we'll see, of course, whether the criminal court is in his future or what might happen to him. thanks very much to both of you. still to come, a new hollywood film about the hunt for osama bin laden's. it's picking up awards, there is oscar buzz. it's going to be a blockbuster and major controversy. ack situations are flying about whether the filmmakers were given classified information by the white house about the raid. >>> and baby mania sweeping through britain. we'll tell you how william and kate's baby contains a centuries-old law that we are thrilled is changing. duralock power preserve. it locks in power for up to 10 years in storage. guaranteed. duracell with duralock. trusted everywhere. ♪ ♪ [ male announcer ] everyone deserves the gift of all day pain relief. this season, discover aleve. all day pain relief with just two pills. this season, discover aleve. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. a new way to save on your prescriptions. it's the aarp medicarerx saver plus plan from unitedhealthcare. with this plan, you can get copays as low as a dollar through a preferred network pharmacy like walgreens -- where you'll find 8,000 convenient locations. best of all, this plan has the lowest part d premium in the united states -- only $15 a month. open enrollment ends december 7th. so call today or visit your local walgreens. >>> the royal baby craze. talk of the most anticipated baby since -- yeah, that's probably right, suri cruise. the duchess of cambridge is expecting. the deputy prime minister says he expects a change in succession law that no longer dictates the next monarch must be male. this is a big thing. "outfront" tonight, raha lewis. appreciate your taking the time. explain this to me. what is this law change? >> essentially all it means is that it no longer makes a difference if you're a male or female, and you're in the line of succession to the throne. both male and female will be treated equally, as of october, 2011. >> okay. so it's retroactive. so if they can't get it fully passed, it's still okay. how far are we from seeing this law go through? is there any doubt? >> well, actually, it was first announced in october, 2011. it went into effect immediately. it's going to be put into legislation, so it will be a little while before we see it in writing. but it was made effective as of october, 2011. >> all right. and so prince william was seen going to visit catherine at the hospital today. given the situation they were forced to announce this much earlier than they normally would have. >> right, right. we know she is expected to be in hospital for the next few days. she is being treated, and he is by her side. and hopefully it won't be long before she's out and about again. >> thank you very much. rahha, we appreciate it. so much attention on this, kate middleton. marco rubio and paul ryan reinventing themselves with speeches. and john mcafee wanted for questioning in the death of his neighbor. he has fled from belize. but tonight we actually know where he is and why he's there. everything has to be just right. perfection is in the details. ♪ get to holiday fun faster with pillsbury cookie dough. but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth! thanks. a hybrid? most are just no fun to drive. now, here's one that will make you feel alive. meet the five-passenger ford c-max hybrid. c-max says ha. c-max says wheeee. which is what you get, don't you see? cause c-max has lots more horsepower than prius v, a hybrid that c-max also bests in mpg. say hi to the all-new 47 combined mpg c-max hybrid. of washington about the future of medicare and social security. anncr: but you deserve straight talk about the options on the... table and what they mean for you and your family. ancr: aarp is cutting through all the political spin. because for our 37 million members, only one word counts. get the facts at earnedasay.org. let's keep medicare... and social security strong for generations to come. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. so i never missed a beat. that's health in numbers. unitedhealthcare. trying to find a better job can likbe frustrating.gs, so at university of phoenix we're working with a growing list of almost two thousand corporate partners - companies like microsoft, american red cross and adobe - to create options for you. not only that, we're using what we learn from these partners to shape our curriculum, so that when you find the job you want you'll be a perfect fit. let's get to work. >>> welcome back to the second half of "outfront." we start with stories we care about, where we focus on our reporting from the front lines, and we begin tonight in iran. the navy there claims it has captured a u.s. drone, saying the drone entered iranian air space over the persian gulf. but a u.s. defense official tells cnn that whatever device iran has, it is not an actively operating navy drone. officials say the navy has fully accounted for all of its unmanned vehicles. there are reports the drone was carrying out spy operations. >>> internet security tycoon john mac afee says he's in gaut mala but police believe he's in beli belize. he's wanted for the shooting death of his neighbor. he says the government is trying to pin the murder on him. macafee hired a new lawyer. he says he chose gaut mala, i'll quote him, the closest place to protect his life from persecution. >>> and george h.w. bush is still in the hospital tonight for treatment of a lingering cough and bronchitis. he was supposed to be released over the weekend, but a spokesman from methodist hospital in houston tells "outfront" that doctors are being extra cautious with his care, and are in hurry to send him home. also told us the former president had a good day yesterday and that his conditioning condition is improving. >>> and this just in a moment ago. mali government officials have agreed to end hostilities. this is according to a reuters report. the meeting between the officials and ansar dean and the mnla. those are the tourago rebels. as part of dialogue going forward, the parties agreed to reject any forms of terrorism and extremism and respect human rights. we'll see if that actually moves forward. >>> it has been 488 days since the u.s. lost its top credit rating. what are we doing to get it back? we're drilling for more oil at home. that could mean more jobs. today the energy information administration said american crude oil production averaged 6.5 million barrels a day in september. that is the best, people, in 15 years. and now our fifth story "outfront." >>> we go from a good story to a bad one. the fiscal cliff. dissension within the ranks. it seems not recall republican lawmakers and conservative groufs are in lockstep with john boehner. earlier i spoke with one gop house member who hasn't been on the same wave length as the speaker recently. he's in senior leadership. here's what deputy whip congressman tom cole told me about those who in the party say taxes shouldn't be on the table. >> for those who say we're putting revenue on the table, the american people did that when they lented, you know, the president and a democratic senate again. again, they have to agree to a deal or tax rates on everybody go up. i think we shouldn't -- we should do everything we can to avoid that for as many people as we possibly can. >> "outfront" tonight, grover norquist, whose anti tax pledge signed by most sitting republican lawmakers on capitol hill has been a major point of contention in this debate. grover, let me start by asking you something congressman tom cole said. he said it's the american people who spoke. this was central to the president's plan, right? raise taxes on the wealthy. i know that you don't like it, you ardently don't agree with it. but didn't the american people speak? >> well, on the very day that they elected obama by a few percentage points, the exit polls also asked, would you like to raise taxes to reduce the deficit, 63% said no. 86% of the ads run for obama were personal attacks on romney. he won a stunning mandate to not be romney. he did not run on the basis he was going to do massive new spending and the kind of tax increases, $1.6 trillion that he's now talking about. and at the same time that obama was elected president, the republican house, which had twice voted for a real budget -- remember, the president's budget he claims he has a mandate for was put up before the house and the democrats all voted against it. in the senate, the democrats didn't want to have anything to do with it. it's a little hard to argue, he had a mandate for something the rest of his party ran away from. >> well -- >> did not run ads on those issues. >> and, of course, it was a bit more complicated than that. but to your point about the exit polls, it's true, most people said that they didn't want tax increases to solve the deficit. what they said -- the majority, was they wanted both balanced. they wanted cuts and tax increases. which is what both john boehner and the president -- in very stridently different ways have put forward. >> well, one of the challenges you have is if you ask the question, would you be willing to tax the rich, some people say yes. second question, if it they tax the rich in a deal, do you think they'll also hit the middle class. yes. if they raise taxes, do you think they'll just spend it as opposed to reduce the deficit? the majority say yes. so there's a real question here about -- when you say would you like to raise taxes to reduce the deficit, people understand, as happened in '82 and '90, the democrats promised to use tax increases to reduce the deficit, but they just spend the money. >> well, i mean, you could talk about what the money is going to be used for. i mean, we have a -- we have a big problem in terms of the deficits we're running. but let me just ask you this crucial question about where we're going to go from here, grover. because i know you have this kind of soul-searching moment in front of you. where you can keep going ahead and saying no revenue, right? has to be revenue-neutral. and you might lose. or you can start to bend a little bit. are you going to have to start to bend? >> well, i'm in favor of more revenue. if you talk about the tax reform that speaker boehner has talked about in the letter that he and all the republican leadership sent to obama asking him to get serious about spending restraint, which he hasn't done yet -- >> but can i just clarify -- >> reduce rates and broad oh en the base. >> it didn't say for sure let's reduce rates. >> yes, it did. >> it opened the door to reducing rates -- john boehner has put on the table before he would be willing to raise revenue without cutting rates. >> no, in the context of tax reform, i think the letter is very clear. in the context of tax reform, which reduces rates, broadens the base, and gives you economic growth. >> okay, but you're not going to get that. can we just be honest? you know that's not going to happen right now. i mean, it's not. >> okay. this is exactly what we were told two years ago, when we had the discussion on increasing the debt ceiling. the democrats said you can't do it just with spending restraint. what happened? we did it just with spending restraint. the democrats and some in the press called that a failed negotiation. they didn't finish the sentence. we failed to raise taxes to let the government spend more money. >> but we still were running trillion-dollar deficits. >> yes, the government is spending too much money, and unfortunately, obama has committed to spending more money. he has a trillion -- there's $1 trillion of tax increases baked into the cake because of obama's 20 taxes in obamacare. 90% of those tax increases that obama put into obamacare were conveniently put in to take effect after he got re-elected to the presidency. so there a massive tidal wave of obama tax increases coming at the american people, starting in january. has nothing to do with the fisc fiscal cliff. but it has everything to do with obamacare. >> now, it is true that a lot of those taxes did take place after the election. that's something we pointed out and is a fair point. but let me just ask you about the compromise we have to go to. because like i said, again, to get this done, taxes are -- i mean, they're going to go up on somebody. i just believe that this is what is going to happen. i think tom cole thinks it's going to happen. i think tom coburn thinks it's going to happen. i wanted to play a bite from him and get your reaction. here he is. >> sure. >> i'm okay to compromise even on some of my issues, if, in fact, we'll solve the problem. but what we have is a game being played for political -- for the extreme right wing and the extreme left win rather than coming together and leading and solving the problem. >> so grover norquist. if you had to accept the tax rates would go up, all right, just they're going to go up and they're going to go up on somebody. what would you really want in return? not revenue-neutral. real tax increases. what do you want in return? >> well, i am in favor of revenue increases -- look, if you grow at 4% a year instead of 2% a year, reagan levels instead of obama levels or french levels, you get $5 trillion in additional revenue over a decade. we could pay down all of the overspending of obama's first term by having 4% growth instead of 2% growth. and we know how to do it, because we did it under reagan. >> but why would you cut spending then, spending that's supposed to encourage the economy to get better so you get more growth and get rid of your deficits? >> i think -- well, i think we should, one -- first of all, we have to pay down the debt he ran up. we're spending $1 trillion more each year, the federal government -- we, the federal government is spending $1 trillion more each year than when obama walked into office. it's that overspending we need to bring down. raising taxes doesn't solve the overspending problem. it feeds it. and, again, we have been through this lucy and the football thing in '82, in '90. we didn't take the advice of the tax increase last year, and we got spending restraint for the debt ceiling. remember, the republican house has a tremendous power over the debt ceiling. so all this stuff about how we have to bend to the emperor's will isn't true. >> all right. grover norquist, thanks very much. we appreciate yourtation the time tonight. let's bring in james carville and rihan salaam. good to see you. grover norquist is not bending. not yet. >> well, president obama, or as mr. norquist refers to him, obama -- president obama has done something mr. norquist has never done in his life and that's get people to vote for him. so i would also remind mr. norquist who conveniently forgets that president clinton raised taxes on the wealthy and created 22 million jobs. president bush cut taxes on the wealthy and created 1 million jobs. so his economic expertise is a little behind here. but the truth of the matter is, everybody voted in this election, the president said he would raise taxes on people earning over $250,000. that's what he's going to do. that's what's going to happen. he has the authority of an election behind him. running for office is a difficult thing to do, and the people that win the elections have a lot more moral authority than in a democracy than people who talk about elections. >> ryan, that does seem to be the point. republicans may not like it, but that wasn't what this election said american people want. the majority of them. >> i think it's certainly true you have a large number of americans, 60%, according to a "washington post" abc news poll who favor raising taxes on folks earning more than $250,000 a year. but there are a couple other things to keep in mind, as well. president obama often talks about returning to clinton era tax rates. he wants to raise much more revenue from high earners than the clinton era tax code would have raised. and president clinton also dramatically lowered capital gains taxes, and that generally benefited high-earners. so a lot of folks believe that's something that balanced out against the increases on ordinary income. so, you know, that's something that arguably contributed to that surge in technology stocks and much else that created surpluses in the latter half of the clinton presidency. it's a more complicated picture. definitely there are folks who want tax increases but let's not gloss over president obama is talking about way higher taxes than we saw during the clinton era on the high earners. >> that's true. all right. want to talk about a party going on tonight. james, pretty good. there is a party going on, jack kemp foundation is having a party and marco rubio is speaking. paul ryan is speaking. they both want to have complete makeovers. you know -- marco rubio doesn't want to be the hispanic guy who talks about immigration. and paul ryan doesn't want to be the grinch that stole medicare. paul ryan is standing there right now. what do you think? are these guys going to succeed? are they the future? >> if i was paul ryan, i would want to be something else. if i was selected vice president and i got slaughtered in my -- and my candidate got slaughtered in my home state, i would be looking to have a makeover also. i don't blame him. i think that senator rubio could run on anything he wants. i agree. if he wants to run on economic expertise, perceived economic expertise, it's a good thing for him to do it. he should do that. it's apparently what he believed before. if he wants to change his mind, that's his business too. i don't fault any of these guys. and 2016, the political commentators, the more politics, the better it is. >> looks like we're starting tonight, james ryan. >> yeah, all for it. he's great. >> this is actually a really interesting development, in my view. i think if you're looking at paul ryan, one thing you hear from folks in the ryan camp, is that he was very eager to talk about poverty and a new war on poverty during the romney campaign. but he didn't have much of an opportunity because the romney folks were so risk-averse. and that's something he's going to talk about tonight. whereas marco rubio is someone who comes from a scrappy, lower middle class background who wants to talk about upward mobility for all americans. that's a theme he's going to build out over the next two years and it's a theme exactly what republicans need to talk about. the problem is, these guys are the music, it's not clear they have the lyrics. it's not clear they have the policy substance yet that's really going to make this message resonate. they are young and they have a lot of really solid ideas. and they have the right broad message. but the question is, are they going to have the right policies, as well. >> james, do you think these are the two -- these two are the future right now? i know it's early and it's hard to tell. but i mean, a lot of the republican parties really invested in these two young men. >> well, you know, from 1948 through now -- actually, 1944 through now, it's always been the senior person. the obvious person that got the nomination. they don't have one this time in the republican party so it's going to be interesting to see it air out here. but there's a lot more people. my own governor, governor jin l jindal, has been very vocal. he seems to be itching to pull the trigger in 2016, too. there are a lot of other people. clearly, the people who are going to watch -- i just don't think that ryan had a particularly good campaign. he didn't do anything for his ticket in wisconsin, he didn't do very much across the board. he didn't show a lot. but maybe he was constrained by the romney people. i'll buy that. and let him go out and make his case. >> thanks very much to both of you. it's interesting. >> well, thank you. >> because minorities rising in the republican party, a party that can't seem to get its act together when it comes to minorities. this is going to be a fun game to watch. >>> "outfront" next, a new hollywood film about the hunt for osama bin laden hasn't opened yet but is attracting serious controversy because we have new details on how much controversial information the film makers had access to about what happened on that raid. >>> and president obama has prepared to make some big changes to his administration and one report says he could turn to the editor of "vogue" for one of the top posts in the country. two years ago, the people of bp made a commitment to the gulf. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. anyone have occasional constipation, diarrhea, gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! [ female announcer ] live the regular life. phillips'. [ male announcer ] lifts to clear obstacles. ♪ lowers to cut drag. rises to every challenge. the class exclusive air suspension in the new 2013 ram 1500. engineered to move heaven and earth. guts. glory. ram. guts. glory. trying to find a better job can likbe frustrating.gs, so at university of phoenix we're working with a growing list of almost two thousand corporate partners - companies like microsoft, american red cross and adobe - to create options for you. not only that, we're using what we learn from these partners to shape our curriculum, so that when you find the job you want you'll be a perfect fit. let's get to work. to a world of super-connected intelligence. the potential of freescale unlocked. nyse euronext. unlocking the world's potential. to investing with knowledge. the potential of td ameritrade unlocked. nyse euronext. unlocking the world's potential. anne's tablet called my phone. anne's tablet was chatting with a tablet in sydney... a desktop in zurich... and a telepresence room in brazil. the secure cloud helped us get some numbers from my assistant's pc in new york. and before i reached the top, the board meeting became a congrats we sold the company party. wait til my wife's phone hears about this. [ cellphone vibrating ] [ female announcer ] with cisco at the center, working together has never worked so well. >>> welcome back. let's check in with anderson cooper with a look at what's ahead on "anderson 360." >> a live picture on capitol hill. and here's what's happening now. nothing. at least on the most important issue facing the country, the fiscal cliff. there has been zero progress on a deal, no behind the scenes negotiating. no staff level talks, even. nothing. former senate majority leader george mitchell has ideas on how to get a deal. we'll also speak to a political panel, eric erickson and rich gaylen and what it will take to stop the suffering in syria. we show heart breaking pictures of these like a family fleeing for 21 months now. we know it's hard to watch. we think it's worth making sure the world knows what is happening inside the country. senator john mccain has also been keeping a close eye on syria. you'll hear from him tonight. >>> and the image of a man in the final seconds of his life about to be struck by a subway train. we'll ask dr. drew pinsky about why he was being photographed instead of rescued. there was a lot of people standing around on the platform. should they have gotten involved. a lot more at the top of the hour. >> we'll see you in a few minutes. >>> now our fifth story "outfront." did hollywood get access to classified information? "zero dark 30" is about the situation in which osama bin laden was killed. it hasn't opened yet but has oscar buzz and is sloweded in controversy. republicans say the obama administration gave directors unprecedented and possibly inappropriate access to classified information. the white house denies this. here's barbara starr. >> you don't think she's a little young for the hard stuff? >> washington says she's a killer. >> reporter: it's a hollywood spy thriller with as much as oscar buzz as it has controversy. "zero dark 30," the story hunt for osama bin laden from the oscar winning powerhouse team of katherine bigelow and mark bowe recreates how it all happened, from the female cia analyst who finally figured out where he was hiding to the navy s.e.a.l.s who killed him. >> there are two narratives about the location of osama bin laden. >> reporter: the controversy? the obama administration has faced accusations it gave undeserved access to the film makers. in real life, everyone involved in the hunt for bin laden remains sworn to secrecy. but the film makers say they got firsthand accounts. they just won't say exactly how that happened. >> i think as a reporter you would understand we take protecting our sources and sort of the exact methodology of our sourcing pretty seriously, just in the same way if i asked you how exactly did you source that story. >> reporter: katherine, when you hear mark talk this way, are you a journalist or a film maker? >> that's a good question. well, i certainly try to be as faithful to the research as possible and make a good movie and make a film that was timely. >> reporter: but how much access they got is the issue. >> obviously things went wrong here. >> reporter: congressman peter king, chairman of the house homeland security committee, first called for an investigation at both the cia and the pentagon. >> there was an event where operatives were involved and they did not know until they got there that the hollywood people were going to be present. so which means their identity would have been shown. >> reporter: king questions whether the military was pressured to cooperate on the film. >> what access they were told to give, some resisted, some acquiesced. >> reporter: cia and pentagon officials say no secrets were given away. >> my understanding is the hollywood people got access to cia operatives, cia locations, that they had access to navy s.e.a.l.s which they should not have had. and i can't really go beyond that other than to say that now, this investigation has gone on and it's been expanded. >> reporter: bowe says he and bigelow were very aware of national security concerns. >> we're acutely aware that there are sensitivities around this material, and i think we approached this with a lot of respect for those sensitivities. >> pretty -- i really want to see this movie. it does raise a legitimate concern about how much cooperation there is between the cia, between hollywood, between the military. >> it does. there's a long-standing relationship with hollywood and the cia and the u.s. military but you know, since 9/11, this has been a very sexy thing, the navy s.e.a.l.s, the commandoes, cia agents. everybody likes to watch this kind of movie and the real question here, is did it get ou
FOX News
Nov 30, 2012 2:00am PST
>> good morning. i am heather childers. >> and i am heather nauert. it is friday november 30th. it is time for the top 5@5:00. a measure that prevents terrorists from being transferred from guantanamo bay. diane fine stein commissioned a report that was looking into u.s. locations that might have been suitable for housing those detainees. >> frustrations boiling over for residents in staten island new york who went to a town hall meeting begging fema for help in the wake of super storm sandy and felt their calls went unanswered. >>>> (inaudible yelling) >> we can nt go nowhere. >> i don't know what's going on here. >> over 700 people were there many couldn't fit into the auditorium. >> the united nations voting to we can niez a palestinian state. -- to recognize a palestinian state. >> thousands of people celebrating in the west bank. general assembly officially changed the palestinian status from u.n. observer to an observer state. >> palestine is not a state. when the u.n. engages in this kind of activity shows a real lack of commitment to stop it from happening. >>> netanyahu says the vote violates past agreements. >> george h.w. bush rapidly improving in the hospital. the 88-year-old was admitted for bronchitis and readmitted the day after thanksgiving. the doctors at the methodist hospital say the condition was never serious but wanted to prevent it from becoming pneumonia. former president bush could be released as early as this weekend. >> we know two people have won the record $580 million power ball jackpot. we will find out who one of them is today. that person bought his or her ticket at this gas station in missouri. lottery officials will announce who it is today. his son talked to tv crews about the big news. >> i didn't win the lottery but he laz won the lottery. i am happy for him. he worked hard in life. he won't have to any more. >> he will split the prize with the person in arizona. that person remains a mystery. they have no law that protect the the identity of the winner like other states do. they will release the winner's name. >> this is not a game. jobs are on the line, the american economy is on the line. this is a moment for adult leadership. >> speaker of the house john boehner giving his take on the lack of progress made in the fiscal cliff talks. and adds tensioas tensions rise capitol hill obama will be pushing his fiscal cliff plan at a toy factory today. >> peter doocy has more on that. >> the senate majority leader mitch mcconnell listening to tim geithner layout the proposal to avoid the cliff. it was so one-sided rich mcconnell reportedly said he burst into laughter. republicans claiming three want a balanced approach and they want to raise revenue without killing jobs and they are going public with their frustrations. >> i am disappointed in where we are. i am disappointed in what's happened over the last couple of weeks. but going over the fiscal cliff is , i am trying to resolve it. >> democrats want republicans to slow down and realize what they are offering is not new. it's the sail debt pl-- same de plan president obama had in the american jobs act. it's not a new stimulus it is something that has been on the table for over a year. >> something should a political price be paid in order for congress to do its job to make sure the united states of america pays its bills and does not default for the first time in history is deeply irresponsible. it was deeply irresponsible in the summer of 2011 and would be deeply irresponsible if we were to see that kind of approach taken again. >> oo there were whispers there was a deal coming together. the white house says they are ready to compromise but republicans need to ask the wealthiest americans to pay higher tax rates. >> the fiscal cliff deal, charles krauthammer is talking about it. he calls it quote insulting. >> it's not just a bad deal. what geithner offers on the street robert e. lee was offered easier terms and he lost the civil war. democrats won by 3 percent of the voeft and they did not hold the house. republicans won the house. this is not the condition of surrender but that's what the administration is asking the republicans. they are not only cuts there are increase in spending with a new stimulus. this is almost unheard of. what do they expect? they obviously expect they will cave on everything. i think they ought to simply walk away. the president is the president. he is the leader. they are remanning republicans explain all of the cuts they want to mac. we had that movie a year and a half ago where paul ryan presented a budget a serious real budget with real cuts, obama was supposed to give a speech in which he would respond with a counteroffer. he gave a speech we had ryan sitting in the front row. he called the ryan proposal unamerican offered nothing and read on a med scare in the next 18 months. they expect republicans are going to do this again? republicans are going to walk on this. >> moving right along to stories you can bank on this morning, have you ever booked a vacation on-line and maybe wondered where all of the fees came from? a new report says you are not alone in the hotels may be to blame. shocker. joining us with more is robert gray. i found it interesting, the phrase, drift pricing? >> drift pricing it drifts over to your bill. resort fees you go to the web site you think i am booking this for x dollars a night and it's 50 percent more according to some reports. it's everything from newspapers to the gym in some cases internet access that will you would take for granted and not even know you are getting charged for. >> similar to the airlines with extra fees. >> $1 trillion for extra loans. >> it may be a trillion dollars for giving some of the debt. $470 billion potential debt. >> this could be a trillion dollars of debt. it is moupting now to 13.4 percent default rate. tuition has been soaring. opening up a can of worms in bad way. >> it is not the ones born in 2013. >> according to the economists which is a sister the economist mag zone it's switzerland. i don't know if it's the chocolates in the alps or fondue. they looked at quality of life, trusting government stability of the economy notice the peripheral nations there because of the civility of the economy. the debt load knocks the u.s. all of the way down to a not so sweet sixteen. >> wow. number 16. >> we were number one. >> germany fell farther tied with us. >> i still say we are number one. >> thank you so much. appreciate it adds always. >> deanna is here with us this mornin -- janice dean, you have been following this major storm that has been brewing out west for days. >> it will be a major event heading into the weekend. 10-20 inches of rain for parts of northern california into goern. not only today but for the weekend it will be a significant flooding event as well as 50 to 60 to 70 miles an hour winds. very impactful as you can see heading into saturday and saturday and monday. 4sh 8 inches on top of some of the rain totals you have already seen 6 inches of rain and the snow is going to certainly pile up in the see aierra and cascad where you can see 3 feet of new snow. great news for skiers but they have to take the rain and the flooding and the unfortunate side of mud slides in the area. >> janice, thank you so much. happy friday. >> they don't call them new york's finest for nothing. new york city police officer's act of kindness caught on camera. it is sweeping the nation. >> this officer giving a brand new pair of warm boots this officer paid for himself. he gave them to a pabarefoot homeless man on a very cold night. >> we are hearing from that cop turned angel. linda schmidt has more now. >> i looked down at this gentlemen's feet you could see the blisters from a distance. it was so cold i knew i had to do something. >> 25-year-old police officer has become an overnight hero and sen sayings after his generosity was captured on camera unbee known to him. a tourist snapped a picture of him give ago homeless man in times square a pair of all weather boots on a freezing night two weeks ago. >> we had no socks no shoes on or anything. i went up to him i was like where are your shoes. he said it's okay officer i have never had a pair of shoes but god bless you thank you for doing what you are doing. it had taken me back. >> deprimo went into a nearby sketchers store and he used his own money to buy the homeless man to give him a pair of boots. >> knelt down put the socks, boots on him. you want to grab a cup of coffee maybe get something to eat. he said no, listen you have done enough. he said god bless you and be safe. >> the store manager was so moved officer deprimo's newhart he gave the officer his employee discount to help him out. so the # $99 boots fos 49.50. >> it was inspiring. the other man ger that was here well. listen this is a great thing this is what we should do all together. came second nature offer the discount. >> the woman who took this picture jennifer foster was visiting new york from arizona. she worked with the county sheriff's office out there. she posted the picture on the nypd official facebook page and it went viral. >> i heard him quite clearly say i have these size 12 all weather boots for you. let's take care of you. the gentlemen sat down against the wall. i am telling you his face lit up. he smiled. >> officer deprimo was praud to show the cuff links they gave him for doing such a great job. the officer carries the repeat with him from the boots he bought. >> i keep it in my bulletproof vest i mostly keep it because i think it's an important reminder especially now some people have it really tough. when you are having a bad day you might thi it can't get any worse you see something like this and you remember people have it worse. >> an mazing officer. officer deprimo will join us later on fox and friends today. that's at 8:50 a.m. eastern time. >> that's a great story. favorite story of the week. >> time now 13 after the top of the hour. coming up the governor who wants to call a christmas tree a holiday tree getting an earful from o'reilly. >> you are not doing the right thing. >> i don't make anybody happy. >> everybody is unhappy with you. >> the entire heated exchange is next. >> do something that's legal but you can still get fired for it? >> should employees smoking legalized pot in certain states get handed pink slips from their jobs? we will tell you about that. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] till you finish your vegetables. [ clock ticking ] [ male announcer ] there's a better way... v8 v-fusion. vegetable nutrition they need, fruit taste they love. could've had a v8. or...try kids boxes! >> 17 after the top of the hour. a judge has given the green light to give 19 executives bonuses totalling $1.75 million. the bonuses come as 18,000 workers are set to lose their job when the company lick dates. the se -- lick whiliquidates. >>> the government blaming rebels for the outage. this all comes as the white house announces it is considering providing more aid to the syrian rebels. >>> 18 minutes after the hour. now it is time to look at who is talking. the governor lincoln casey is coming under fire for his decision to change the christmas tree to a holiday tree. bill o'reilly confronted him on the issue. listen to this. >> that super seeds the governors of rhode island with all due respect. there's a tradition to the christmas tree. it's there in context. so guys like you come in and the previous governors i am sure there are people in other places. we don't want the christmas tree tradition any more. that's what t's people off. you say you want people to be happy they are not happy. they want a christmas tree to be a christmas tree. there's no holiday tree. there's no tradition of holiday tree. >> did you have to go to public school and have to say the lord's prayer in public school? >> i did. get this. first we had to say the pledge of allegiance but all of us had to say the lord's prayer. but then the supreme court ruled that that should not be that all students non christians have to say a christian prayer. there was outrage just like there is now with the tree. now you look back on it and you say of course you can't ask non christians to say a christian prayer if public school. these controversies you generate them here but they shouldn't be controversies. >> there are two different issues. >> no, not at all. >> a christmastime is a symbol. it's not a symbol of religion. >> you like to make a lot of controversy. >> you are the guy making the controversy. all i want to do is keep the traditions of christmas that make most americans happy. the polls show 90 percent of americans celebrate christmas and they want to call it the christmas tree. you are in the minority. you are imposing your will and you are making people unhappy in a season of joy. you are not doing the right thing, governor. >> there you go, bill. it is now 20 minutes after the hour. next on the rundown there's a health alert. glass was found in a cholesterol pill used by 4 million americans. we will tell you what you need to know. >> sick of the holiday headache? it can cure your hangover when you walk out the door. >> welcome back. time now for the fox news health picks. a roundup of the top medical stories. >> we are previewing great stories on fox news health.com. if you take the cholesterol lowering pill lipitor listen up. the fda says the drug maker has halted production of the generic version of the pill. they found out how glass particles ended up in some bottles. the maker has 40 lost earlier this month. surprisingly unhealthy food rice cakes. organic junk food. rice cakes are low in calories and a good option if you are kraiing a crunchy snack low in calories. the problem also low in nutrition. labels can really be deceiving. just because it says multi grain doesn't mean whole grains somewhere in the box there are grains even if it's a box of sugar puffs. just because you eat organic ice cream doesn't mean you are not going to pack on the sugar. it is sugar regardless of organ you can or not. hangovers, paying for it in the morning nausea, headache and dry mouth what should you do to fight the dreaded alcohol induced fluish feeling water, bananas asparagus and girginger. >> thank you very much. the time is 25 after the top of the hour. coming up why your baby's cries could be a sign of autism. what every pair represent needs to know that's up next. >> should they be fired from their job for smoking legalized pot? >> back in 1982 michael jackson's thriller album was released. it went on to be the best selling album of all time. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios like say, gas station sushi. cheap is good. and sushi, good. but cheap sushi, not so good. it's like that super-low rate on not enough car insurance. pretty sketchy. ♪ and then there are the good decisions. like esurance. their coverage counselor tool helps you choose the right coverage for you at a great price. [ stomach growls ] without feeling queasy. that's insurance for the modern world. click or call. >> good morning. welcome back to "fox & friends first". i am heather nauert. >> i am heather childers. it is half past the top of the hour. the top five stories making news for you at this hour. we begin with this. army private bradley manning speaking publicly for the first time since his arrest in 2010 for allegedly providing classified information for the web site wikileaks. he thought he was doomed to die that's a quote in custody. he pleaded guilty to 8 lesser charges in which he faces 16 years in prison. however manning has not pled guilty to any of the major offenses. he is trying to get the judge to dismiss the charges against him because they argued the military treated him too harshly. >> the u.s. consulate in benghazi. the senate homeland security committee saying it does not have so-called man traps despite the recommendation from the state department's inspector generals three years ago. now man traps are special holding areas for visitors. that is something republican senator susan collins says might have slowed down the terror attack that left u.s. ambassador chris stevens and three other americans dead back on september 11th. >> governor january brewer slapped with a lawsuit over immigration rights. for driver's licenses for young immigrants. those young people were given work permits and avoided deportation under president obama's dream act. they claim not having a driver's license makes it difficult for them to go to school and work. they call brewer's move unconstitutional. >> cot sound of your baby crying actually be a sign of autism? there is new research that suggests pitch and the crying of babies as young as 6 months could determine their risk to develop autism. the higher more variable the pitch the grart the risk of a-- grart the risk of autism. they help the information can help identify children at risk for the disease much earlier in life. >> so sweet, though. >> talk about a very close encounter with a hump back whale. >> oh my god. that's -- >> the whale getting very close to a small canoe in australia as you heard it actually made the little girl that was taping the whole thing that little squeak you heard made her nervous. she was in a boat when a giant whale swam up to them and under the canoe. luckily they were just fine. that's your 5@5:30. >>> speaking of eaten up it was a power lunch yesterday at washington. president obama and mitt romney coming face to face for the first time since their last presidential debate. that meeting taking place at the white house. it appears that they talked about the country's leadership. they are still not making much progress in the fiscal cliff. >> doug is live from washington. >> either way they stave off the fiscal cliff. spending cuts at the end of the fiscal year. it has really shocked republicans this year on capitol hill. they say it calls for, for one thing, $1.6 trillion in new tax hikes over a decade. it is also stimulus spending and the spending cuts. both sides are necessary to reduce the deficit. those the president would largely tackle later perhaps next year. >> first despite the claims that the president supports a balanced approach, the democrats have yet to get serious about real spending cuts. no substantive progress has been made in the talks between the white house and the house over the last two weeks. listen, this is not a game. jobs are on the line. the american economy is on the line and this is a moment for adult leadership. >> perhaps most su prirprising the white house proposal to get the president just about unlimited power to raise the nation's debt sealiceiling and w more and more money unless they reject. these will be tough negotiations ahead. we got a little sample of this yesterday from senate majority leader talking to john boehner. >> i don't understand his brain. you should ask him. >> not much time to get this done. the president meantime flies to pennsylvania for a campaign style rally to sell his plan. back to you guys. >> in certain states out west it is legal to smoke marijuana just to get high. does that mean you might not be able to get away with it without serious consequences. dan springer gets into the legal and professional leave. >> they may be in for a rude awakening. they can smoke pot legally in their home but get fired for a drug test. it is still ill legal drug and businesses have a right to have a drug free workplace. business owners are worried because they feel it will be harder to hire workers and drive up legal bills when they fire employees. medical experts say the high lasts between 2 and 3 hours but the drug can still be detected in the system for up to a week. one of the gray areas is how long the person stays impaired. a doctor told me reaction times can be slowed for 24-hours. it could be a major liability for business owners. >> you put a small business owner right in the middle of a vice a government requires you to do this state law requires that, and you are stuck in the middle. >> then there's the issue of union workers playing by a whole different set of rules than any one else. union lawyers say pot should be treated just like alcohol. if it is smoked in the home there will should be no punishment at all. because they use arbitration not a court system they don't have much success for those fired over marijuana. >> off duty conduct has no impact on the job. it would be the employer's burden. >> the real winners are the lawyers who get a lot more work. heather and heather back to you. >>> dan springer reporting for us. thank you, dan. >> before you leave the house this morning let's get the first degree weather update with janice dean. >> much of the country remains quiet with exception to the west coast where we have a series of storm systems that will bring inches of rain, 20 inches of rain. flash flooding is possible for much of northern central california up towards oregon. we could see wind gusts in excess of 70 miles per hour. this will be an event that lasts well into the weekend and into next week. the other big story is the warm-up across the plains where we see temperatures 10-30 degrees above average. beautiful for the end of november into december. and one last thing, ladies, i want to focus on hawaii. our 50th state something we don't tend to do enough. we need to see the love for hawaii. look at that. 80 degrees for all of the islands and if you want to see weather in your neighborhood tweet me janice dean fox. >> your personal weather woman. >> alaska yesterday, hawaii today. >> now it is time for a look at your starting lineup. sports stories of the day. first up thursday night football. the atlantic falcons defense making all of the difference. they interrupted new orleans saints quarterback drew brees five times. it is a key win 21-13. they remember this one all too well. mariana rivera tearing the acl at the beginning of the last season. it is not over for the sand man. the yankees and rivera have agreed on a one-year $10 million deal. >> could the end of the road be near for u.s. women's goalie hope solo. team usa's new coach takes over in january. will solo be in his plan? the question is whether the new coach thinks her play out weighs the controversy she is known for. >>> it is now about 20 minutes before the hour. no food, no heat and no health. the victims of super storm sandy are giving fema a real piece of their mind. listen to this. >>> you think this is a joke? >> we will go live to staten island. that is the scene of last night's heated town hall. that's coming up next. >> does it sound familiar, you are always checking your cell phone for the next text message? is it because your phone is contagious. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, children laughing ] move to the country, d live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> here's a quick look at headlines this morning. members of the senate voting yesterday to speed up troop withdrawal from afghanistan. president obama says he wants all 66,000 troops out of that country by 2014. the latest senate vote back in a quickened pace could influence the president's timetable. check this out a brand new video that is just in our newsroom from the person believed to be the other power ball jackpot winner caught on surveillance camera. the guy gets real licks sited when he checks out a ticket he reportedly purchased in that state. he shows the winner number to the clerk and a couple of customers. that's the guy. >> frustrations boiling over for sandy victims in staten island new york. held by town and fema officials. listen. >> you think this is a joke? >> robert moses is live for us with details. >> good morning to you. good morning everyone. this area of staten island got pupil melled. hundreds packed into long island for a meeting with officials as well as representties from city agencies and fema. they wanted answers about damaged homes temporary housing and air quality. they were told to write down their questions. the meeting quickly evolve into a shouting match with residents pleading for help. >> no one is doing what's right for us. >> my ohm owner's insurance offered me $150. what can i do with that? i need to rebuild. sir, i need your attention, please. >> the middle class is getting the royal finger. what did he say? fema worked for me. fema isn't doing nothing still. they have gone around in a circle. >> i have been on the news i have been all over the television i still cannot find the department. >>> and many times the man who organized that meeting the staten island borough president had to tell people to calm down. he even said i guess you don't want to pass this meeting. clearly an emotional time for staten island residents who continue the process of cleaning up and rebuilding it's a process that will take a long time. that is the latest live from staten island this morning. heather, back to you. >> so hard for so many families. >> the time now is about almost 15 minutes to the top of the hour. her daughter is sick with a did he doily disease why did this woman kidnap her 11-year-old from the hospital. details on the desperate mom and the manhunt ahead. >> we will show you some of the hottest toys from christmas. these are all under 100. >> first let's check in with a kid himself at heart anyway brian kilmeade to see what's coming up on "fox & friends." >> great show as usual. coming up in about 14 minutes it's that time of year again. rick gets out of bed early gets on his climbing suit and repels down 22 stories live with the general manager of the new york yankees. the picture of a selfless cop giving boots to a homeless man it went viral. we have this cop right here and surprises including geraldo rivera who seems very nice. all coming up on "fox & friends." >> 10 minutes to the top of the hour. a desperate search is underway for an 11-year-old girl with leukemia. these sur slains photfoet -- ph show her mother taking her from the hospital. she changed her clothes and walked right outdoors. the young girl could die from an infection doctors are worried. >>> checking your cell phone is not only addicting it's contagious. after watching college students in dining halls researchers found the stew dints were more likely to check their phones when their companions had done so just a few seconds before. interesting. heather? >> thank you so much. it is time for our holiday wish list. it's our weekly segment that gives you ideas for this year's hottest gifts. today it is all about kids. here with six gift ideas is toy insider.com jackie briar. >> this one is a school table by play school. it is little kids. >> it is 6 to 36 months. it grows with the child. it has legs so you can play it standing up as well. it is great for educational learning it has letters, numbers, colors but it also let's kids really rock out. >> it is a lot of fun. >> my kids loved it. >> second thing for kids a little older is the ipex piano. >> it combines high-tech with classic play of piano. you can play it without the ipad you can play the piano and with the ipad you can then play games that teach you how to read music and play your favorite songs. it is a great product. >> for kids ages 3-6. >> the leap pad 2 this is hot for kids a little older. >> tablets are huge. this is a tablet for the youngest kid. it let's kids be like mom and dad ages 3 and up. it has educational apps e books and has a camera on front and back. >> can you add just it for a 3-year-old or a 5-year-old? >> yes, the apps and educational content can be adjusted. you can download anew stuff all of the time. >> how much? >> $99. >> well worth it. >> this thing is a very popular company. we have this in our home. >> it is great. family love to travel for the holidays. it's a little tough on the younger ones ages 6-7. they can scoot along on their own carry on luggage. parents can pull them along if they don't want to scoot on their own. >> is this stirred de enough you can check it as a bag? >> you can. you can catch it you can carry it on. you can customize it. >> and inside here. >> we have something i love. this is from moofashion place.c. it comes with a gift card. let the girls be a fashion designer they can design their own jewelry or clothes. they pick whatever style they like color, design, they make a little label so they can show all their friends they designed these clothes. >> this is something you order it on-line and design it on-line and the label has a little girl's name on it andrea fashions? >> fantastic. love that idea. >> finally we have something for kids a little older. it is a super cool thing you can control with your tablet or cell phone. it has a camera on board live streaming video for your tablet. you can up load it to facebook spy on your little brother. >> spy on your parents. >> it is a cool piece of technology. >> this is 99 as well. >> $99. it is called the wi-fi intruder. >> jackie briar toy insider.com. >> we will have an update for you lart today fox and friends first.com. next we have the hottest gifts for the men in your life. that is another show. the time now is about 6 minutes to the top of the hour. who can forget this video of zebra and his pony pal running down the streets of new york city. the circus is ore and the owner in a cage of trouble. we will tell you all about that. christmas close-ups revealed. we are sharing your not so jolly meetings with good old saint nick. a >> welcome back. two minutes until the top of the hour. we look at the good, bad and ugly. up first, the good. old st. nick. a wealthy missouri man posed as secret santa and handing out hundred dollar billless to sandy victims. up next remember the jebr-- zebra and pony. the owner was slapped with fine that inspectors found in the zoo. a truck crashing in a fire hydrant in san diego sending a yegzer 30 feet in the hair. >> tiz the 16. thousands of families pose for the classic christmas card. sometimes things don't go as planned. >> send us your awesome christmas cards and photos. mooreland family e-mailed the photo. twins danielle and brandon not happy.
CNBC
Dec 5, 2012 7:00pm EST
folks, we switch gears back. we still have no fiscal cliff deal, but there's talk between president obama and tim geithner. congress has adjourned for a long weekend. that's kind of insane. eamon javers joins us. >> reporter: the president began his day this morning before an audience of business leaders and he continued his campaign of persuasion amongst some of the nation's top ceos. >> i am passionately rooting for your success. because if the companies in this room are doing well, then small businesses and medium sized businesses up and down the chain are doing well. if companies in this room are doing well, then folks get jobs, consumers get confidence, and we're going to be able to compete around the world. >> and then larry, later in the afternoon, our steve leishman sat down with treasury secretary tim geithner. geithner in that interview late in the afternoon made it clear that this is brinksmanship of the highest order. >> i want to understand the administration's position when it comes to raising taxes on the wealthy. those making more than $250,000. if republicans do not
FOX News
Dec 7, 2012 8:00am PST
, and that's just the beginning. this fiscal cliff deal if they reach one it's just the beginning of deal making because it's not going to solve the problem. there is going to be more talks going into 2013 on tax reform and dealing with the deficit further. >> reporter: bob cusack thank you so much for joining us. we appreciate it. >> thank you. jon: let's talk a little bit more about the pickle that house speaker john boehner is in. he's struggling to avoid going over the fiscal cliff. he's facing growing criticism from members of his own party, the speaker removing four conservative congressman from key committees, the move seen by some as a way to close ranks over a potential fiscal cliff deal with the white house. outside conservative groups are voicing their displeasure saying speaker john boehner could even lose his speakership. carl cameron joins us live in washington. so he has a lot of problems with conservatives right now, car. >> reporter: sure it's not just off the hill. some of the members on the hill. fiscal conservatives are once again whispering, in some cases outward
CNN
Nov 29, 2012 4:00pm PST
today. let's go "outfront." we have breaking news. new details on the fiscal cliff deal that timothy geithner put on the table today during his meeting with congressional leaders on the hill. these details just coming in. jessica yellin has that and what have you learned about what geithner took you know, listed out with the numbers and put on the table? >> hey, erin, here are some of the details i'm getting from senior officials on both sides. the headline is that he put out a number of $1.6 trillion in new taxes. that was at according to republican officials, a surprise. they expected a much smaller number and that has some republicans crying foul. he proposes extending unemployment insurance. continuing the dock fix. that's approving additional spending on medicare to pay doctors. the amt patch protecting middle income americans. $50 billion in stimulus next year and in return, the administration would offer $400 billion in additional medicare and other entitlement savings next year to be spelled out as they negotiate. there would also be an agreed mechanism for allowing a vote on
FOX Business
Dec 5, 2012 8:00pm EST
fiscal cliff deal, we are pushing for it. charles: at some point they do need to address this. this hurts every single american in the wrong way. thanks so much. you know about a bad business? you might think twice about giving it a bad review. next, a woman's review on yelp strikes online criticism. charles: let me be brief, she posted on yelp. now, she need legal help her in being sued for $750,000 for posting this, do not put yourself through this nightmare of the contractor. the customer listed her complaints and said the jewelry was missing from her house. does this warrant a lawsuit? tamra holder says yes. rebekah arose what lynn says the contractor doesn't have a case. >> you know what, there is no lawsuit for defamation. he is suing her and the responses -- it is true. it's not defamation when it's true. charles: that sounds pretty cut and dry. >> if you ask about her answer, i respectfully disagree. she has accused him of committing a crime. stealing jewelry from her home. where does the investigation? where are the criminal charges? charles: she said the jewelry was missing and
FOX Business
Dec 5, 2012 11:00pm EST
>> april 15,010, and tea party rally sparking across the country. thousands of americans protesting taxes spending. tea party catapult republicans to take control of the house of the -- house of representatives. republicans. welcome, everyone, i am charles payne hosting for neil cavuto. congressman,elcome to the show. in this move by representative boehner coming in to the newsroom a the tea party is in trouble. there is no doubt about that. you think that john boehner is making a mistake by rejecting tea party? i think the speaker makes a mistake and the tea party is not a group that embraces serious tangible of government that is traditionally work in this country. there are members of congress who got elected because, in fact, the tea party activists across the country were involved in the election. the tea partiers and outsiders -- i would remind john boehner that there was a time when he was the outsider that was an annoyance to the party leadership. i understand the speaker being annoyed when he has people within his caucus that are committed to a set of principles that they make it hard for him to make easy deals. but i would also remind him that people are not going to forsake their principles for something thats as insignificant and their life as a committee assignment remark that is right. >> if he thinks this is a party discipline, he is sadly mistaken. he often knows that from his own experience as a younger time in his service in congress. charles: representative, it has been set from the beginning that the tea pay not only poses an incredible threat to the senate democrats, but to establish republicans. now, representative john boehner opportunity to mitigate what they have in washington. >> well, i think what he is doing is looking at -- he is missing the point. the tea party activists are reminding the candidates in the republican party, who eventually do get embraced -- when you are like us you win. when you are like them, you lose. it has been going on for yeas. those who say when you stand on the principles of small government and individual liberty, fiscal responsibility, you are attracted to a wider range of voters. >> i have to jump in here. because we have this discussion in december 2010. a lot of people say that a lot of things have changed and americans are voting back. maybe the republicans should work be lke their counterparts across the aisle. >> again, let me say that if you want to, if they want to be an echo instead of an opposition. they can do that. nobody is going to go for the fake imitation. democrats are professionals about big korbel government -- porkbarrel government. instead of the cheap imitation of the republicans trying to be like barack obama. charles: some republicans have done a pretty good job with spending as well. before i let you go, i want to ask about the controversy of freedom works. it is a kind of thing that the mainstream mediahas been talkg about. you let freedom works and a half. give us a little insight into what happened. >> first of all, largely unrelated to the tea party movement. i left there because i had serious concerns about the ethical and moral behavior of the senior leadership. i don't particularly want to discuss that at length. i think you will be resolved. i am consoled by my certn knowledge that time will heal all wounds and this will be all sorted out. but it has nothing to do with with john boehner's misguided sense, his colleagues, all of who were elected as republicans on the republican ticket. or the notion that peole have been dreaming about since 2009, that the tea party will dry up. tea party activists are people who have a long standing commitment to ideals. charles: weappreciate your help. dick armey, thank you for coming on. kiersten powers joins us now. is that good news for the republicans orhe whole country? >> both. look, i think the reasonhey are losing steam, even the republicans have recognized that it is a problem. i am sure that a lot of people have readdabout the purging. they realize it is something that alienates people. it is not something that would appeal to a broad swath of people. with the fiscal cliff -- with that feeling debacle, i think it was the lasttraw. people felt thewere just too entranced and. charles: here is the thing. we are not the country that needs to be. we have $16 trillion in debt. forget about the people with the pom-poms. our situation is awful. isn't there a need for a group of regular citizens to voice their discontent with the ida. our children and grandchildren don't have any shot at reclaiming the glory that was once everybody. >> i think what you just said it describes how most of the country feels. everyone is concerned about that. there is room for people that will hold people accountable. what happened with the tea party is they realllly weren't holding everybody accountable as much as being extremely partisan and a sense of being so intel obama -- anti-obama. but i think that there has to be a sort of allowance. i am not putting this just on the tea party. you get these ideological purists who want all or nothing. that is just not the way the country works. so i think you have to find middle ground. charles: i have to tell you something. the sort of campaign that i have seen against the tea party, which by the way grew out of the t.a.r.p. situationn it goes beyond someone being to anti-obama. st this week, tim burton said that he has been to tea party rallies and he has heard the n-word spread around. this is a relentless campaign to put people in their place. it seems to me to be totally unfounded and totally unfair. >> i agree with that. i think people go looking to find something to discredit them. and author of "the new york times" wrote a book about the tea party. "the new york times" is not super conservative, and she found what you said. these are not people who are racist. they are not uneducated people that the media likes of retirement. i think most of them have good intentions. the issue is if you're going to tell your party it is my way or the highway, and if you deviate from this at all, we will come after you. that is not constructive. it just isn't going to work. what you have to do is try to move them and get them to the right place. charles: i guess only the president can say it is my way or the highhway. kiersten, thank you so much. the former dec commissioner cochairing. he is going gangham style. >> stop getting on youtube so you can see gangham style. charles: more from simpson later. but first, the founder of mcafee on the run and we are trying to track him down. the most vocal of sandy's victims is blasting back. find out why coming up next. >> we are the people that are ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 ml350 for $599 a month at your local mercedes-benz dealer. now we need a little t more... [ male announcer at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the difference that quality time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other health professionals who helped us achieve the highest average star rating ang national medicare companies... and become the first and only national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in the quality of care and service we're able to provide... which means better health outcomes... and more quality time to share with the ones who matter most. i love you, grandma! [ male announcer ] humana. ♪ arles: another hearing on hurricane sandy today. the victims are feeling that they areot being heard. >> fema is doing nothing. they still keep going around in a circle. a lot it is ajoke. charles: this staten island resident says washington is losing focus on hurricane sandy. to bfrank with you, from day one, staten island did not release been high on list o priorities. a lot of people felt that way then. how are you feeling? >> i agree with you. it seems like staten island is a forgotten puddle. you know, we are being forgotten about. i started to wonder is it because it's a repubcan town? because most people ar republicans here. and is this because the majority of people that get loaded for office are republican. the president said when i met with them that fema works for him. and results are going to happen. it still hasn't. charles: i remember that. of course, your outburst at one of these recent meetings, when i thought the first time, i actually had goosebumps because i could feel the passion and pain. also, discussing with the president of the united states, he meets in certain promises to you. it feels like maybe it was just a photo opportunity. it does not? >> yes, that's what it feels like. again, we have a lot of victims. there are people who have lost their loved ones the answers are not being given. you know, getting the runaround, the president giving you a runaroun even fema. fema has answered to him, so why are they not? charles: scott, here is another thing. one of the things we did see from people in staten island is that they sort of took a can-do approach to this. the first responders obviously did a fantastic job, but the local businesses have pitched in almost immediately, and they have done a lot of things that you normally would've expected the government to do. do you talk about it being a republican town. a lot ofeople are saying that the republicans all of a sudden want government aid. how come the people in never vote for this stuff all of a sudden think that they should be entitled to a? >> well, yes, it is true, the neighbors got together. it was the people from the outer boroughs. different areas. again, they say that theyare praising fema and the governor of new york to the mayor of new york to the president. the only time i have seen the governor or mar, was at the time i saw the president that they are giving applause to the wrong gency. charles: right. before i let you go, we are not going to let you go until you get back on their feet. there is a lot of criticism after hurricane katrina. there are images thaa are seared into our minds. and he dido there, but do you think if there were a lot of poor black people on staten island, do you think they would've gotten more sympathy? >> i don't know. everybody blamed george bush for katrina. they are blaming obama for sandy. i don't know it has to do with our race color. you know, we have middle class people that work here of all colors and all races here. they are the same people that have been here helping each other out. i don't think it has to do with the color. i think it has to do with being democratic or republican. charles: keep fighting the good fight. we will keep checking in on you. thank you. chars: the economy is scary, but this is even scarier. not the zombies, but the government spending taxpayer government spending taxpayer money on 5-hbut some people wondered oveabout caeine.imes. the executive director of the center for science in the public interest said, "overdoing caffeine alone is actually pretty difficult to do. someone would have to make an effort to consume 40 or so 200-mg caffeine tablets." or... about this much 5-hour energy... in a single day. we recommend... not more than two per day. yeah, when we first came out with the product... you know, i made sure of one thing. if my family wasn't going to use it... if it wasn't good enough for my family if it wasn't safe for my family... i'm not gonna put it out there. i take it almost every day. and twicwhen i play tennis. this is our criteria that we have to be safe... if we're notilling to do it ourselves... we're not asking anybody else to do it. we're not gonna sell it. so, that's our approach to safety... that is a higher standard you can get. charles: paying for security? it could make us more financially insecure. senator tom cobn saying that homeland security has spent $35 billion in grants to make america safer. but it still can't measure if we are actually safer. the department is wasting things on zombie acalypse training and an underwater zombie apocalypse. thank you. i love every year when you come out with this reportt it is absolutely fascinating how washington get so creative wasting our taxpayer money. to your point, are we any safer for all of this? >> i think that is a big question. the urban area security initiatives that were passed in 2003 are important about hardening our greatest risk and cities. 9/11 commission says we shouldn't spend any money unless we are doing it on a risk-based calculation. security initiative all the way up to 66 cities. what is happening is what is intending to harden our cities and make us more resistant to terrorism has now become a real dealgrantmaking process. and they can't tell us is if this will make us any safer. what we want to see is if we are going to spend this money, borrow it from china or our kids, we need to make sure that we are getting our money's worth and it is supporting what we intended it to. which is to increase security of our most humble cities. chars: senator coburn, where does the buck stop on this kind of stuff? these guys have a lot of this money. they can do things like this. is there any specific person who has ever been held accountable for this? >> the people you should hold accountable is not the agency. we are allowing the agency to do this. we see waste and stupidity. the fact that we don't have a metric to measure, and we don't know how the money is spent, there are no follow-ups, it just shows the competency of the agency, but also the competency of washington in terms of doing what they're supposed to be doing. charles: on that note, we are talking about the fiscal cliff. earlier today, president obama brought the debt ceiling debate, or would be debate into the picture. it feels like a lot of the work that you do -- people say okay, we spent 100 grand on this or maybe watching the shrimp on a treadmill. it's not a big deal. >> is a big deal because the way you eliminate a trillion dollar deficit is a billion dollars at a time. the wavy you get a billion dollars is 100 million or $10 llion at a time. so what is our excuse? can we say that it is okay to waste money and hundreds of thousands of small areas that add upo trillions of dollars? or do we have to look at big areas? what i would put forward is congress isn't doing their job and how they write it and oversight it. i still pick up anyof my feet on the ground because the penny is were 3.5 cents. anyone in america who is struggng today, we don't have the luxury of ignoring stupidity and waste anymore. charles: i have less than a minute. i have to squeeze this in here. you think we could be a transitional tranormative point in thisscountry where it is okay? where it is okay to spend money we don't have? where the american public has given a thum-up to the idea? >> i do not think that they have given a thumbs up. i think this last election was about what was what will hurt our growth. but nothing in terms of discussion about the money that gets wasted every year by this. he can pass all the tax hikes on ameeican citizens and it will never solve the problem. you can't reason enough tax dollars be one confiscating it all might be on the agena. thanyou for your work. i appreciate your good insight. okay, if you think the tea party is leaving cloud, think again. why this man is not stopping his fight over taxes. he is close to winning it, he says. and why ala simpson isn't dancing around the dead. before copd... i took my son fishing evevery year. we had a great spot, not easy to find, but worth it. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significaly improve my lung function starting within five minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbort, today i'm breathing better. and that means...fish on! symbicort is for copd including chronic bnchitis and emphysema. it should not be taken more than twice a day. symbirt may increase your risk of lung infections, osteoporosis, d some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. with copd, i thought i'd miss our family tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today, we're ready for whatever swims our way. ask your doctor about symbicort. i got my first prescription free. or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help. ♪ here come the -- [ cap twisting off ] hey, yo?! i lost audio. what happened?! [ ice crackling ] what!?!? oh, it better not be! what's going on? ♪ it's time to put a stop to this! yay-e, yay-e! [ male announcer ] the coors light silver bullet pint. it's bigger. it's resealable. it's still the coldest. ♪ get out of my booth!!! [ male announcer ] frost brewed coors light. the world's most refreshing beer. >> we need to move towards a single rate tax system. if we do that, america will prosper. charles: it looks like art laffer is for proving some new blood for the tax hike. senator mike leigh is joining the push for what he says is a cleaner ansimpler and better tech solution. unlike dc outsiders coming actually has the power to do it. welcome to the show. senator, the flat tax has been an idea for four or five years now. you think thaa there is any sort of reception at this time? >> i certainly think that there needs to be. i think this is a good opportunity for us to revisit the idea. when we have president who is trying to pit one group of taxpayers against another, promising to increase government spending, we need to revisit the fact that anytimime we raise taxes, even if it's only raising taxes nominally on the rich, we are making all americans were poor. charles: i do agree with that wholehrtedly. to be frank, this division -- getting one person against another -- i am digressing a little bit. think about four years ago at this time when everybody on both sides of the aisle, mybe this country will ce clos together. now, we are being ripped apart because someone is marginally more successful than their neighbor. i find it to be despicable. what i also don't understand is why republicans have not been able to articulate the message. in other words, the flat tax. what would you tell the person at home making $40,000 a year. thinking that the fat cats ve advantages. why is the flat tax that are? >> we have to remember that our income tax system serves two purposes. one is to fund the operations of government. the other is to communicate to the voters the true coot of government. our current system performs the first function poorly because it produces a volatile inconsistent system. it deceives some americans into thinking that the government cost little or nothing. in fact, they pay for higher taxes on other brackets. its paid for in terms of increased prices of goods and services and through unemployment and diminished wages. charles: i agree with you, once again. changing pace a little bit, monday night, representative john boehner asked several members of the tea party, the tea party getting a tremendous amount of negative press. a lot of people saying that if they are done, let's stick fork in him. what would you say to those people? >> the fact is that this grassroots political movement that started in 2009 is not going anywhere. it has become a part of what the republican party is. all americans agree that it has become too big and too expensive. that is what this movement stands for. this is an important part of our future. moving forward. a group of americans who are coming together, saying that we have to control government spendinn. charles: you have to give some credence people who might say that senator mike we would have five additional colleagues if not for some of these tea party candidates. >> that's absolutely false. anyone who says that doesn't understand the movement or is an enemy to the cause of conservatism itself. lookt what we did achieve this year. the new republican senators that we have, including ted cruz of texas and jeff blake and deb fisher from nebraska. those senate candidate lost in a large part because they got off the message. they stopped focusing on the basics of government downsizing and simification. i think that's the message of government reform, perhaps they would have gotten elected. charles: i tend to agree. 100%. just for me, i happen to think of the tea party is phenomenal. i wish they would get back on the grass. forget about the websites for now and running for ffice. thank you for pushing the flat tax. senator, we appreciate your time. >> thank you. charles: the murder suspect john mcaf is on the run. we are following this next twins. i didn't see them coming. i have obligations. cute obligaons, but obligatio. i need to rethink the core of my portfol. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-8-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. charles: the suspected murder john mcafee is on the run in central america. lauren antonetti is here with the details. >> it is better than most books. john mcafee used to live in belize. they say if you've been to belize, it is unbelievable. that is exactly what this story is. let's take you to the details. ittarted on november 9. that is one for of 11 dogs were poisoned. mcafee later shot them to put em out of their misery. lo and behold, his neighbor shot [inaudible] in the head and died. that is when he left believes. he spoke to reporters and he kind of new what he was doing. we found a picture of him earlr this week on the third of december. he was in guatemala. it was taken there. he denied that's where was, but now we know he was holding a press conference in guatemala tomorrow. charles: this guy has always been something of a aracter. when he became rich, he aid a lot of off-color things. now he has serious criticism from the government of belize. it would seem to me that at some point, maybe we will get to the bottom of this. is there anyace you can run? any country around him without an extradition treaty? >> he says he wants to stay in guatemala. he likes it and he likes the legal system. he feels safe there. he did not feel safe in belize. he was accusing the police are threatening the parents of his girlfriend. they planted drugs in his home. all of these things. he has been called insane. you know, he is a suspected murder, the police want to question him about his neighbors shooting and he is running. there are so many question marks on this gory. charles: it might be more than just a movie of the week. [laughter] there is no doubt about it that they had a whole lot of runs with each other, him and his neighbor. the police police have been called to the house on more than one occasion. it's not looking too good for him. >> he had 11 dogs that bark all the time and girls and prostitutes over at all hours. his neighbor, he called the police on him and complain. but in mcafee's defense, he probably did kill his neighbor. charles: he could be charlie sheen's friend. that would be a sight to see. thanyou, we will talk to you later. meanwhile, while everyone is worried about the economy plunging over the cliff, it looks like the funding for medical devices has already fallen over the cliff. investors are now pulling the plug. >> they make heart comes and stands and prosthetic devices for returning soldiers. they make devices to work on brain tumors. what is happening is that obamacare, we are finding all sorts of odd taxes that are coming out. now, we are seeing the medical device tax is a big one. bacally, this is a t that will hit the medical industry, and it doesn't hit profits, it hits their sales. charles: the products that keep us alive and help us, by the way, when u say there is not going to be attacks a tax on the middle class, this taxes every person that may ever have to go to a hospital and meet one of thesedevices. >> yes, that's right. 43,000 js cut possibly in this industry. this is an industry that spends $10 billion annually. this is a 3 billion-dollar annual tax. they are projecting essentially that r&d will go overseas. we are seeing manufacturing jobs lost in this country and these guys are getting hurt. 800 ceos and medical groups sent a letter to the senate saying that saying that we want the repeal of this tax refund the fiscal cliff. it is a tax rate that is increasingly seen as unfair. it is willy-nilly. they say that they are increasing the number of people are insured. and they say wait a second, that's not how it works. charles: the same argument that they use, by the same token, it is so odd that they singled out medical device makers and tanning salons are it is like -- what the heck? singh that we need to go after those nefarious medical devices. we need to get those guys. charles: you know, at some point, people have to understand. great innovation and breakthroughs will bedelayed. it is hard to calculate how many, but there is no doubt that this wl end up killing people. >> the issue is with venture capitasm, it's already pulled back. a 42% plunge in funding of medical device makers since last year. already companies like stryker announcing job llaoffs. whether we see this as part of the fiscal cliff deal, we are pushing for it. charles: at some point they do need to address this. this hurtsvery single american inhe wrong way. thanks so much. you know about a bad business? you might think twice about giving it a bad review. next, a woman's review on yelp strikes online criticism. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... [ male announcer ] at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the difference that quality time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, urses, hospitals, pharmacists and other health professionals who helped us achieve the highest avege star rating among national medicare companies... and become the first and only national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in the quality of care and service we're able to provide... which means better health ouomes... and more quality time to share with the ones who matt most. i love you, grandma! [ male announcer ] humana. ♪ charles: let me be brief, she posted on yelp. now, she need legal help her in being sued for $750,000 for posting thisdo not put yourself through this nightmare of the contractor. the customer listed her complaints and sd the jewelry was missing from her house. do this warrant a lawsuit? tamra holder says yes. rebekah arose what lynn saysthe contractor doesn't have a case. >> younow what, there is no lawsuit for defamation. he is suing her and the responses -- it is true. it's not defamatiowhen it's true. charles: that sounds pretty cut and dry. >> if you ask about her answer, i respectfully disagree. she has accused him of committing a crime. stealing jewelry from her home. where does the investigation? where are the criminal charges? charles: she said the jewelry was missing and thwhole thing is a nightmare. >> a reasonable person would assume that if you're posting on yelp, theontractor didn't do the work -- part of it is also that the jewelry is issing -- a reasonable person will assume that it is that guy who stole it. charles: so the shoddy work aspect of it was okay? >> there were issues as to whether he did the work or not. as much as freedom of speech goes. how much can people say online and how much is there a violation of it. >> people can say a lot online. if you interpret the irst amendment rights of speech as well, this is the internet. i am posting what i feel happens. what i feel, my subjective opinion. that is something that we are all allowed. >> but what about the jewelry that is missing? >> the jewelry is a sticking point. i have not confirmed whether or not she didn't file charges with the police or not. it is very interesting that the contractor did not say anything about her not filing charges with the police. he just said that he did the work. >> are you saying that he is making an omission by not saying that what she said is -- [talking over each other] [talking over each other] >> and has nothing to do with the crimal aspect of the tory. >> you are saying that in his complaint he didn't bring up the jewelry missing. [talking over each other] >> she's not defaming him in that aspect. >> it lists every aspct. if you read it. it says i am suing because my work was not completed and it was not completed on time. >> he completed all of those things. charles: here is the thing though. if this is worrisome, in a country where there is free speech, if someone is a big money to do ajob, there is a whole website dedicated to helping your neighbor not go through what you're going through. this lawsuit wins, doesn't that turn all that upside down? >> you know, defamation isn't necessarily, it doesn't get to the crux of whether people can post their opinions nline. it is a slippery slop. we have this problemn facebook. people posting things about other people on facebook and whether it is this or that, these are all issues that their are a gray area in. charles, there are attorneys an you can go online to see what combat is like by the regulatory body. that doesn't exist with regular companies. >> which is why people have been successful. there are a lot of people that i have hired to do work. >> that's right. someone has to evaluate them. yo know, with his contractor to come ahead and sue for 750,000. he claims that this has hurt his business by $750,000, it is such an aggressive assault on this woman who just tried to protect others, if she had valid proof this work was not done, he is going to face a definition suit as well. the map. >> that is not necesrily defamation? people sue each other all the time and counterclaims. charles: in otherwords he is calling her a liar. >> they are going to take a counterclaim suit andt the end of the day, i think this is going to get caught toed out by the court. >> you have to prove the defamation. i don't think that $750,000 is that high. that's all of the perspective business. the guy makes $100,000 per year, this post is online forever. charles: you are assuming that everyone will be this? >> he can ask the court to remove it if the court deems in the lawsuit that was an unfair post. that is one of the case. [talking over each other] [talking over each other] charles: this whe thing must be talked out. alan simpson, he does not like washington style. he is going gangham style. he is going gangham style. that is coming up the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone...but her likes 50% more cash. but i'm upping my game. do you want a candy cane yes! do you want the puppy? yes! do you want a tricycle? yes! do you want 50 percent more cash? no! ♪ festive. [ male announcer ] the capital one cash rewards card gives you 1%ash back on every purchase plus a 50% annual bonus on the cash you earn. it's the card for people who li more cash. what's in your wallet? you know how painful artburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. ♪ charles: finally tonight, the video that has gone viral on us. you are about to cede your first. former debt commission co-chair alan simpson like you have never seen them before. ♪ >> stop enstar ramming your breakfast and tweeting your first world problems and geting on youtube so you can see gain -- gangnam style. ♪ and start using those precous social media skills to go out and find people, three people week. let it grow. don't forget, take part or get taken apart. these old coots will clean up the treasury before you get there. ♪ >> again. and then the lars. a cowboy. charles: he did the lasso part really good. going gangnam style over this debt. stopaltzing about this issue. but the debate is far from over, and we are hoping simpson is ne dancing. if he releases a video of himself doing the electric slide, we will be
CNBC
Nov 28, 2012 7:00pm EST
everybody good luck in powerball and i'm sorry because the "mad money" powerball has been taken and we're going to win. we're going to be very diversified when we put our $500 million together. i'm jim cramer, see you tomorrow! >>> good evening. >>. i'm larry kudlow. this is "the kudlow report." if you say the right thing about the fiscal cliff deal, boy, will these markets turn on a dime and i would like to be optimistic. neither taxes nor spending nor entitlements were solved today. in fact, president obama never even mentioned the word spending. the one thing we do know, your taxes are going up from an obama care tax attack. no matter what happens on the fiscal cliff. and is another bailout nation on the way? student loans up to $1 trillion, huge delinquency rates, default rates going sky high, no credit standards and sky high tuition. sound likes a real bad story to me. ceos have just wrapped up their meeting with president obama about the fiscal cliff and minutes ago john harwood landed a big fish. goldman sachs ceo lloyd blank finefein. >> the highlight of the meeting was the intensity from which the white house emphasized that marge al rates as a matter of math and politics have to go up somewhat, if not all the way to 31.6 had to go up and as p he said as a necessary ingredient of a deal, he would support such a rate. >> the president said we would pursue our own interests. i'm not -- i'm certainly not insisting, i don't even desire higher rates. i think there lab drag if revenue goes up and rates go up. but i think there will also be a drag on the american economy if our budget deficit widens out forever, if we're irresponsible and governor doesn't work. left with those four choices, think think -- on the flip side, did republicans ask you to spend any nuts -- i think at this point both sides have acknowledged that there's going to be revenue concessions and entertainment concessions. in fact, if you listen to, it again, i'm not a master of the political art here, i'm in washington but i would say if you had these points of views in a business context, as close as they are, i would say a deal would be in reach. >> you see some fundamental level of optimism from lloyd blankfine but a long way to go with the combination of prief pressure and public pressure, like the president is going to exert before we actually go to the flight of fired. i asked the treasury secretary should the president return to wall street. he it must be someone who understands markets, marry. >> me have 33 days to -- head of all pi he told john harwood. marge i will hates have to go up somewhat. he said that's going to put a drag on the economy but we have to do something about the deficit. i don't really understand reasonings. i think he needs to go back to economic then i would argue the deficit gets worse because the revenues don't come in because the unemployment rate goes up. >> you're absolutely right. france instituted a 75% marginal tax great early last night grease going we've got to make sure we're getting gross right if we want to face the deficit. you go pro row tax reform you broaden out debate like an 82-year-o 82-year-old. >> you think, however, reading from your notes and looking at the stock market, particularly retail stocks, you believe that taxes are going up. you believe that's the stock market message, it meal why then. the blebs saying it when you look at the retailing names, the market tells you they think all the middle class market will get extended. you see order? core it's not just this consumption that's going to you're going to gets will live dent, small cap stocks are underperforming. we're going to have a hard cap gains tax, a high are def inter. a lot of people but in terms of the way you look at the stock market is the smorkt saying definitely higher cap gains, higher dividends. >> there's no doubt about it. when you look at capital gains, you see the small saps are selling off. semiconductors have been sell and hard, asset managers who have trading. they areily. clr, rare ethat signal health insurance pab thein the the difficult dent tax run, the fwhrch let's hope the odds of snachlt sflfrmt sfwrchl and kevin mccullough joins me on set, nationally syndicated tax show host and columnist for townhall.com. you're much smarter than obama than i am. he's saying he wants the senate democratic bill, which will raise the top tax rates and therefore is rejecting john boehner's conciliatory idea of limiting tax deductions. is that the way it is? boehner just got dissed today? >> i think the president is reminding republicans that they lost and that after a vigorous come pain with many of the same ideas that the republicans are trying to defend now, that's goinged not -- if he's serious, he'll willing to make a deal but he's not willing to make a bad deal. on that the president is very firm. >> i wonder if he doesn't want high tax rates and caps on deductions so he can have more revenue to spend. the reason i have that logic is once again today at this campaign rally, or whatever today was, he didn't mention the word spending cut, never once. >> it's not in his vocabulary. one thing we know about president obama is he campaigns to the middle but he kind of straights from the left and what i fully anticipate is there's a reason why dick durbin, who was his senate partner from oil know, is saying which they went to 100% tax rate on million favors and people making above 250,000, it still isn't going to close the gap that exists. lfr maybe the the pie larger. >> let's be very clear, though, the president has already signed into law more cuts than were in the simpson-bowles proposal, he's proposed additional cuts in the 2013 budget he's proposed. to say he hasn't put cuts on the table is completely disingeneralsous. >> karen is making president obama out to be a tight fisted spending cutter. you followed the fiscal beat? >> do you regard president obama as a tight-fisted spending cutter? >> it's somewhere in between. he did sign a cap that would save a trillion dollars over the next would you mean of years. but thens other side of it is that we need about $4.9 trillion of savings over the next year to stabilize grashio, or cutting spending to medicare crieders. you actually do need to take on and storm reforming or we're going to be facing a down grade of all three rate being agencies. >> in brief, this stuff about -- they call it providers. providers are patients, providers congress -- you think congratulations and republican are going to take out from -- >> i think it's going to be a provider but i generally don't think it's like it. >> how can john boehner and the republican, preserving some modicum of preegt market, limited government that lacks even small entertainment cuts and plaques spending cut. the see kwenter, that's gone, right? what is going nobody its place. >> supposedly. >> and mr. bainor has made it very clor that it sounded to me like mr. john boehner despites a's in they were to find ways to get to that number. the problem is as long as the pie stays the size that it, is you're not talking about significant changes that are going to have maybe ten-year changes long time for this kmirnt economy, when you begin to what the impact of this is 20, 30, 45 years a road. you're talking about the. >> my fear is that they've already given up on that. >> no, hold the line! i can hear you're getting excited about this, which pleases me to no end. i jufrs wanted to ask you why should john blaineor play ball if the president won't play ball back. in h and not sure sure about that and i'm not pessimistic. i heard the top tax rates are going to go up. all of come from. >> here's the problem, boehner is trying for sm reason he's trying to adjudicate the problem we were having during the election. they lost. a majority of the american people, more than the number of people who actually voted for the president don't great with that approach. they great with the president's himself here in not recognizing that he does not have the leverage he believes he had. >> he grew his from boehner earthquake. >> no, he didn't. fuel will youly lost sea. >>> now, litz listen to, this fiscal cliff or no fiscal cliff, your taxes will probably go up anyway. it's all because of obama. >> the economy, slam investors and triple capitalism. say no to nationalized health care system, no to blanket tax increases and that means let low. [ male announcer ] this december, remember -- what starts with adding a friend... ♪ ♪ ...could end with adding a close friend. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. bp has paid overthe people of bp twenty-threeitment to the gulf. billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. >>> welcome back to "the kudlow report." americans for tax reform tell us that on january 1st, 2013 americans will get smacked with a staggering $268 billion tax hike, all of that thanks to obama care. happy new year indeed. joining us to report on this, news editor townhall.com. lickity split. let's go through this from your report. i want to rank them by numbers. the biggest one here, $123 billion is a 3 .8% tur tax on all manner of investment. how is that going to help the economy? >> it won't help the economy. they're going to put this new 3.8% sur fax on to investors to pay for obama care. as you mentioned, it cost more than $100 billion. something to keep in mind here is the total tax hike cost for obama care is $500 billion. americans will see more than half of that take place on january 1st. >> that's on top of whatever they decide to do on this fiscal cliff business. katie, the next biggest one, $87 billion is an increase in the payroll tax. .9%, 2.9 to 3.8%, small business busy and self-employed. how does that promote growth. they're going to be hiring less and there are going to be fewer employees. >> don't they talk about this? why don't they do the add-ones that you're doing on the obama care taxes? >> i'm actually not sure about this. i'm pretty confused about why the romney campaign didn't hit the obama care tax argument harder on the campaign trail because the supreme court ruled it a tax for good reason. it had gone through the numbers here on your show. this hit small businesses and in return hits the middle class, the very people that these small businesses employ, the people who will get hid the hardest, even though making $200,000 per year are the ones employing the middle class that president obama keep propping up to get his agenda passed. >> now we have this $20 million medical device tax. this has been around. i believe you write this will really crush medical innovation in the united states. >> right. i think this is one of the more severe tax thaeds we're going to see. essentially with this medical device tax, they're tacking on more costs to life saving devices such as mechanical hearts. it does the same thing as a doctor shortage. the students that go into these programs, myio medical engineering, are not going to see a return on their investment because it's going to be a too expensive for companies to keep as many employees around, which in the long run means companies are going to be producing less effective and less efficient medical devices. >> another one, a nasty one, this one is only worth $13 billion but gee whiz, a cap on special needs kids. can you talk about that? that's incredible. >> the current law states and this will change on january 1st that -- it changed when obama care passed. it used to have a flex spending account that you can pay for special needs tuition with it. that used to be an unlimited amount for special needs families. now the federal government has put a cap of $2,500 on what's called your flexibility spending account. anything above $2,500 will be taxed and the rest will be taxed. they are going to be playing $10,000, $12,000 more per year taxable rate to get their kids per school. >> and they're always talking about how the republicans want to destroy the study for autism. but here it is black and white in the obama. we appreciate it. it's great to see you. >> thanks for having me. >> now to the lottery frenzy. there's already a winner in this game. the government. not good. we're going to explain when "the kudlow report" comes right back. >>> if everything on the fiscal side caves, what incentive is there for tax reform in 20 13? >> ups believes congress does need to move very quickly to get this done. >> there are going to be many moments when it seems like there's a deal and then there are people who fight the deal, which is why we have been featuring the notion of rising above. >> all sides could lose if an agreement isn't arrived upon. music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. >>> the new movie "lincoln" is a smash hit at the box office and the critics, including me, loved it. here as the question -- is there something for our current president to learn from the theme of the movie? if anyone knows the answer to that question, it's lincoln expert doris kearns goodwin and she'll join us in the next half hour. >> now, there's lotto fever all over the country. jay joins us from dallas with the details. >> you can see there are people flocking in here. they have been in waves all day. it has been very business here at police called fuel city, iconic here in dallas, great tacos here, you can buy gas obviously by the name but the big ticket has been the big ticket for the powerball. right now tickets selling at about $130,000 tickets per minute nationwide. over 1 billion have been sold. the states get $1 out of every two tickets sold and most use for programs for education the federal government will tax the winnings at about a quarter. so they'll make a lot of money out of this. unfortunately in the interest of full disclosure, larry, i think think the winning tickets have about been bought here in dallas. right now i hate to tell you, i think i've got them. >> fess up, jay, how many did you buy? full disclosure? transparency. >> only five. but i may be here a little longer. >> if you win, you're not going to retire, are you? >> i'd never retire. a lot of people say this already, i'd probably be pretty tough to work with if i do win. >> now, let's break down the numbers on this powerball jackpot. they're still selling tickets at blistering rate, 130,000 per minute. let's assume the final prize tonight will be ds 600 million. that's just an assumption. if up choose the cash option, if you win and you choose the cash option, we'll calculate you'll keep $393 million. if you live in new york city, federal, state and city taxes will take you down to $223 million. so you keep 57%, you give uncle sam 43%, you still have the $223 million bucks. it's a pretty good deal. but let me just ask you, do any of us know really what the government does with that money, especially the city government? and does it really go for good education purposes, as they say? and is there any bureaucratic skimming off the top? the winner loves this game, always does, but how about the rest of you? please think about it. there may be better ways to invest your money. >> moving right along, did the president really resolve key questions on tax rates and spending and entitlements at his campaign rally today? i never heard the word spending? so how close to a deal are we really? i'd like to be optimistic but i'll warn you, caveat emtore. we'll get into that next. [ female announcer ] if you care for someone with mild to moderate alzheimer's, you'll also care about our new offer. you get access to nurses who can help with your questions. and your loved one can get exelon patch free for 30 days. if the doctor feels it's right for them. it cannot change how the disease progresses. hospitalization and rarely death have been reported in patients who wore more than one patch at a time. the most common side effects of exelon patch are nausea, vomiting, and diarrhea. the likelihood and severity of these side effects may increase as the dose increases. patients may experience loss of appetite or weight. patients who weigh less than 110 pounds may experience more side effects. people at risk for stomach ulcers who take certain other medicines should talk to their doctor because serious stomach problems such as bleeding may worsen. patients may experience slow heart rate. thirty days of exelon patch free for your loved one. access to trained nurses for you. call 1-855-999-1399 or visit exelonpatchoffer2.com. . >>> welcome back to "the kudlow report." >> there are important lessons in the historical movie "lincoln." and taxpayers on the hook as student loan delinquencies explode. who is going to pick up the pieces here? president obama ramped up pressure to raise taxes on the wealthy. i didn't hear anything about spending cuts, entitlement reform or any sign of common ground plan to avert the coming tax and fiscal cliff. joining us to talk about this, we're going to get a gop response, senate republican conference chairman john thune of south documeakota. welcome back to the show. "the washington post" runs an editorial today saying it's time for the president to unveil some leadership on entitlement reforms and spending cuts because he hasn't done it. i want to ask you at the president's pep rally today, did you hear any of those leadership reforms on spending and entitlements? >> i certainly didn't and, by the way, good evening, larry, it's nice to be with you again. i don't find myself often agreeing with the editorial page of "the washington post" but this time they had it right. the president right now, the pep rally today is going out again on friday is really a continue ways of the campaign when in fact right now what he ought to be doing is trying to find some common ground with republicans, with congress up here on capitol hill because we've got to do something to avert this fiscal cliff. the only way we do that obviously is to come up with a package that addresses what really drives federal spending and that's entitlement programs. the president doesn't seem to want to talk about that, nor do democrats up here on capitol hill but we're not going to get a solution here at the end of the year that addresses the near term and long-term problem of this country unless we can deal with entitlements. >> it's a democratic senate. the president referred to a democratic bill in the senate. that bill would extend the tax cut under $250,000 and allow the top rates to rise. he didn't explicitly say top rates because bu that's what that bill does. does mr. obama and the republicans have the votes to pass their bill? >> well, i think they of course will have them in the senate. i doubt they would have them in the house of representatives. more importantly, larry, the president came out of the election, held a press conference, said his number one priority was jobs and growth. we would agree that jobs and growth should be the number one priority. the worst thing can you do if you're worried or interested in growing commit and creating jobs, you can't raise taxes on creating those jobs. almost a million small businesses would be faced with higher taxes. those same small businesses employ 25% of the workforce and you have a study out there that says it would cost the economy 700,000 jobs, reduce take-home pay by 2% and slow the economy by 1.3% it's a mistake to do that. >> i'm looking at the politics of it. i see saxby as a defector, i see susan collins as a defector. dough do they have the vote? >> i assume they keep all 53 democrats on all that. there might be a couple running in 2014 that high a high view on this. 60 is a high threshold. there are republicans out there who are talking publicly about this issue and articulating their-on-position on the tax issue. even if they can get to 60 in the house and senate, they're not going to get there in the house. the house of representatives have made it clear tax rate increases are a nonstarter. >> it just seemed like mr. obama was dissing mr. boehner on the difference between cap rates and deductions. >> i guess my other point isser skin bowls, he comes out of a white house, businessman's meeting today, and said that maybe baum will be flexible and it will only being 37%, 38%. is at that what they mean by common ground? >> i don't think that gets threw. i mean, speaker bainor, other republican leaders have laid out parameters of what republicans can't up to water. >> you only raise $68 billion next year. that's enough to fund the government for less than a week. this does not solve the problem. and you do it at the expense of economic growth, which ultimately should be the goal here. if we want to solve deficits and debt problems, get the economy growing and expanding again, that generates more revenue by comparison. >> let me just ask you a final question. what in your judgment is a key common ground concession that you as a republican -- if you were in the leadership would make to move this ball down the road snp i lot of people get if the president called you and asked you for a concession, what would it be, sir? >> look, we met with a number of ceos today, all of this fixes and that for us, the tax rate increases would be a nonstarter, particularly for small businesses. >> if you carved that out, if you carve them out of the tax hike, would that be acceptable to you? >> for me be probably not but it might gain some votes. we've got some of our members who i think might find something like that. it had to do will loopholes, exemptions, that's the kind of thing that if the president were redity come to the table with entitlement reform you might able to find some consensus around. i don't see with the current posture, no entitlement reform and weefr just going to let rates go up. i don't know how you find a deal with that that any republican or most republicans can support. >> thank you, sir. we appreciate your views very much. >> many thanks to senator john thune. switching gear, would "lincoln" still raking in box office revenue? it is worth note line that these leadership could later to discuss than my friend presidential historian doris kearns goodwine. her book on lincoln, "team of rivals, which inspired rier i thought it was fabulous then. i might have to reread the whole thing. it's great to you have back on the show, let me just ask you. for me, a lay person, with this tree it may be sloppy but it can work. what's your takeaway? >> i think what you learn is you need leadership to set the goal, to get that 13th amendment passed but then you need to use every means can you to make sure you reach that goal. it is messy, it is sloppy, it is confusing. you know,or offering assignments people, you're offering ambassadorships, you're giving pardons out but it's working. that's what democracy is. >> look how engaged lincoln was in that process, okay. first of all, he send seward to hire agents to go after lame ducks. lincoln had meetings with the democrats one-on-one, he had former ball, he had dinner parties, he'd have them over and slam his hand down on thes did des being. he was totally engaged, which i think is totally cool but i don't think president obama at least in recent years has done that kind of thing. maybe he'll do it this time around. he hasn't done that. he needs to watch lincoln. >> i think what you learn is you have to appeal to the higher motives of the congressman, make them know they're there for a purpose. they became politicians hopefully for a reason. so finishing somehow, doing something about the fiscal cliff would be a good thing to remember the rest of their lives but at the same time you have tie peal to their selfish interests, making them feel special, giving them what they need, putting them on plush assignments. churchill said democracy is the worst form of othgovernment, ext all the others that have been tried. >> it was interesting to me, thaddeus stevens, radicalist reconstructionist republican, so by the end of the thing he takes lincoln's advice and he pulls back a wee bit, that shocks everybody and that gives the amendment people, the 13th amendment supporters a lot of good ammunition. so you do sometimes, doris, have to pull back a little bit. you're not giving up all your principles. you're just kind of, heaven forbid, being political. >> heaven forbid, you're right. that is exactly right. thaddeus stevens believes having blacks vote, even perhaps intermarry, having all the privileges of life which republicans weren't ready for. the conservatives would have said we're not voting for this thing but he was willing to moderate his own debate stance in order to get past something he knew was critical to get passed. >> doris, i'm not comparing the fiscal cliff with the great moral issue of slavery, i'm not going to make that comparison but i want to say this -- if you wanted a bipartisan solution to our deficit problems, which are going to go on for a couple of years, why wouldn't president obama think about -- -- he doesn't he think about putting some other in key spots? >> i wouldn't be surprised if he tries to do that. he tried to get judd greg in his cabinet at the beginning. and then he later said he couldn't make that ideological leap. let's see what happens in this coming second turn. my guess is he'll be more open to it. let's see if both parties are open to accept those invitations if they come. >> thank you, doris. honored to have you back. by the way, check out and read hefr book "team of rivals," i read it years ago and it is fantastic. up next, understood bt lo-- stu length debt rises to trillions of dollars. is a four-year degree even worth it anyway? >> tomorrow, the fiscal cliff looms and washington reresponds. the rise above road trip continues. well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place. we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and the next great idea could be yours. ♪ thor gets great rewards for his small business! your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics. put it on my spark card. ow. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve great rewards. [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] >>> bp is temporarily suspended from any new got contracts. they site a lack of business integrity in the deepwater horizon disaster. bp pleaded guilty in connection with the worst offshore only spill. >> is the student loan bubble about to pop? new data shows student loan delinquencies at a new high, no credit standard and a suspicion that bailout nation could once again be on the way. ron, just a couple of real quick numbers. 74% rise in student loans sense the beginning of the recession. $1 trillion now, 11% in serious delinquency, 9% in default and there's virtually no credit standards when these loans made. now, this cannot be sustained. >> it would be like saying you go a mercedes-benz dealership and get it for zero credit and take it off the lot. it makes no sense. the product they're getting is also diminished. we used to be able to say when you got a college education, you'd make $1 million over your lifetime. now that number is about $300,000. you're getting a diminished product and having to pay more for it. tuition is skyrocketing. since the president took office four years ago, the amount that people had to pay for tuition has increased 25%. >> let me stop on that point. in other words, my view is that this increase in student loan, just willy nilly, now the government has taken offer that business from the banks, there's no credit standards and they're throwing loans at it. don't the colleges and universities know that? aren't they using that government subsidy in order to raise tuition costs? >> larry, they love it. that's their bread and butter. that's why they love what's going on right now. they can push out whatever products they want and there's no strings attached. you can get an education in whatever and can you have all this money. so students are like when they're 18 and don't know any better, okay, great, i'll go get a sociology major, major in flower studies. when they graduate, what happens? they don't get a job in that field and they're on the hook for an average of about $30,000. >> i'm a guy who wants to see people go to college, whether it's four years, two years, that's sort of my philosophy. i'm not a guy who wants to see students coming out of school having already destroyed their own credit record. you default or miss a couple payments, they'll destroy their own credit rating before they started life. i don't think they know that. >> we're not becoming generation y, we're becoming generation why us? it really doesn't look all that great for us. going back to the problem, we've increased access. you can get a loan for whatever and when students graduate, what jobs are out there there? we have to get on top of it from a public policy standpoint. you have to look at privatization. would a loan officer look at an 18-year-old and say, yeah, i think you sudden get $100,000 to major in whatever. i'm not saying somebody shouldn't go and have access to college, but i'm saying you have to make sure you have a specific interest. >> a little bit like housing. there's no credit standards. the government is throwing money at it. i'm worried the bailout nation is going to rear its ugly head again when it comes to student loans. >> we switch from student debt to national debt. wall street whip sawed over every new word coming out of washington but what should you do next? ♪ [ female announcer ] today, it's not just about who lives in the white house, it's about who lives in the yellow house, the green, and the apartment house, too. today we not only honor the oval office, but we honor the cubicle, and the home office as well. because today it's about all of us. and no matter who you are, you're the commander-in-chief of your own life. ♪ bp has paid overthe people of bp twenty-threeitment to the gulf. billion dollars you're the commander-in-chief of your own life. to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. >>> groupon ceo andrew mason has been under fire for a slumping stock price. wall street's concern over the company's growth prospects but mason remains confident. today mason said if he ever thought he was the wrong man for the job, he'd fire himself. groupon shares way down since their ipo a little more than a year ago. fire himself. very interesting. now, let's take a broader look at today's stock market. after falling 112 points in a session low, the dow finished up 107 points. nasdaq and s&p both positive on the day. now michael far to make sense it have. you just got to hate this. it's worse than the european union stuff. you just have to hate this and i want to ask you -- >> i hate it but i'm not leddy to fire myself. >> in a serious way briefly, should investors get on the sidelines until this cliff thing is over? >> i wish i knew. i keep thinking back to 2011 when i thought we were getting to the debt ceiling, there was no way congress would wouldn't come up with come miz, no way they'd face their constituents after the u.s. debt was down graded and if that happened, i thought interest rates would go higher and stocks wouldn't respond well. so it certainly doesn't sound in washington right now that these guys are in any way conciliatory or reaching across the i'll. we just don't know. and that lack of information i think kikts tole volatility. in a lot of people believe that somehow or other both case and difficult difficult ends. to beat the tax hike on dividends, costco, murphy oil, disney, ebay, del, oracle and sh washington bureau. what do you think? should people look up there before they why not take advantage of the lower tax rate. you'd hope they have something better to. >> but if it's cash they don't have an immediate use for. the special dividend makes a lot of sense. you get the horse to walk in the direction of the carrot. knock the stick. so the more you tax something, you don't get more of it. >> that's the whole problem. >> it doesn't make sense. >> the the whole big picture of this thing. i think we pretty much know these investment and solid balance sheets, good cash flow, strong earnings and a little dividend never hurt. don't panic through times like this. when fear is there, it's when you should buying, not selling. there's money to be made and be careful and don't get cause up in this emotional fouz. >>. >> i. >> 12 more seconds. >> 12 more seconds. give me secretary of defense stock. >> you know, i'm going to be a little opportunistic. chipotle. it's pulled way back. i think it's a hot stock. people like tacos. >> many thanks. guy gets it done. he's been around a while. knows what he's talking about. that's it for this evening's show, folks. thanks very much for watching. much more on the fiscal cliff as it unfolds. those little things still get you. for you, life's about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives,
MSNBC
Nov 29, 2012 8:00am PST
, great to have you here. a lot to get into this morning as we talk about the fiscal cliff. erskine bowles says he thinks democrats and republicans are serious about getting a deal done, but when you hear congressman cole walking back statements, do you think that's true? >> cole doesn't want to be a political target of the right. so he can easily say i really didn't mean that prks and to ge of the news. and probably trying to set the table for other guys. which is a signal that the right wing is still very stuck in con kreetd as you said earlier. they don't want to move. they are denying election results. but there is real ominous things i think that are starting to surface here. any talk of a mortgage deduction change would be horrendous in my opinion and it would fly in the face of everything barack obama and joe biden ran on in protecting middle class. they have to be crystal clear that that is off the table. the housing crisis started the last recession. if they go after mortgage deductions, if they put that on the table even for high end homes, that will change sales, it will reduce prices on homes, it will slow construction, it could set the table for some tou
CNBC
Nov 29, 2012 4:00pm EST
nancy pelosi. >> it would be nice if they continue to do that. otherwise, we could trade our way out of this deficit. >> we've talked about that before. thanks very much. that is the first hour of "the closing bell." stay tuned. up next, a couple ceos with their take on where we go from here. the second hour with maria. i'll see you tomorrow. >>> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to "the closing bell." i'm maria bartiromo on the floor of the new york stock exchange. the market on a roller coaster ride today. a slight gain on the session, even though the market closed off the best levels of the afternoon. it had been up about 77 at its best. nasdaq composite picked up 23 points. the s&p 500 tonight up 7 1/2, half a percent. the market continues to watch the fiscal cliff. trading action has resolvolved around this. ben, what is your fiscal cliff strategy? what do you want to do with your money in the economy does go off the fiscal cliff? >> yeah, we were worried about that back in september, october. so even though we like the equity markets going into 2013, we wanted to hedge ourselves a little bit, so we took money out of equities. didn't just put it into cash. we put it into three areas we think are still good long term. one is we talk about emerging market equities, but i like emerging market debt. these monetary authorities are done tightening. they fought the inflationary problem that they had successfully. they're in hoed. yield curves could shift down. we stress doing it in local currency. the other areas are u.s. high yield, which i still think is valuable. we do think spreads will contract and emerging market equities as well. >> jordan, what about you? how are you preparing for what could be an eventuality where we go over the cliff and we've got to deal with higher taxes and a slower economy? a lot of people expecting recession in 2013, if, in fact, this occurs. >> think about what works well in a slow-growth economy. consumer products companies do well. high dividend payers. you'll see 100 companies that have already declared dividends this month. those are the strongest companies in the market. those are the ones that can afford to buy back shares or invest in high r.o.e. projects next year. i wouldn't avoid them just thinking dividend taxes are going up. they're the strongest in the market. you also have energy infrastructure, which is paying about 6%. most of it is a return of principle. these are companies with some of the lowest cost of capital ever. high return projects, long-term contracts. the government is in support of energy independence in this country, so we don't think the taxes change for mlps and energy infrastructure investments. finally, if you like high-yield corporate bonds, we love high-yield municipal bonds where we're getting 6% federally tax free. corporate high yield has rallied too much. we've sold it. >> rick santelli, should we be focusing on something else? this constant focus on the fiscal cliff, obviously, it's been dictating sentiment. it's been dictating markets. are there other areas that investors should be looking at? >> well, i had a guest this morning, dr. saunders, who's testified on issues regarding housing, fha, in front of congress. he knows what he's talking about. he brought up what many of us are looking at. a lot of -- you know, real estate, residential construction was one of the positives in today's gdp report. we've seen a lot of positives in housing. but there's been a lot of legal ranging over a big group of foreclosures that looks like it's cleaned itself up. 2013 could see a lot of these dumped in the marketplace. i think housing is an area that we've seen progress, but it still might have a sluggish 2013. i really agree with our guest on high-yield munis. remember, there has been talk that one of the reforms, one of the loopholes they may close is some of the tax treatment of munis. i personally don't think it will happen, but it is an issue to be on top of. >> all right. let me ask you guys the same question, jordan and ben. are there other issues you think will drive the markets away from the fiscal cliff, or is this the appropriate issue to focus on in terms of the impact on markets and money? >> well, everyone who's been in the private wealth space or the investment space like we have has had to learn about default rates in greece and the price of bonds in spain and italy. that continues to be an issue. clearly, what's happening in europe is going to be a head wind for investors. but what's going on in this country from the fiscal cliff perspective, that's really what's driving sentiment on an hour-to-hour basis and really what's driving things to the end of the year. >> sure is. ben, you agree with that? that's appropriate? >> jordan sort of beat me to europe. but i think another issue is look what's happening to the chinese stock market going down as much as it has. it's causing a little bit of skiddishness around what's an important sector of the market, emerging market equities. watching that, i think, will be important to make sure the landing in china economically is indeed soft. >> all right. we'll leave it at that. of course, that has a lot of implications for the world, given the chinese economy has been the engine of growth for the entire globe. thanks, gentlemen. see you soon. we appreciate it. let's find out what moves the traders are making ahead of the fiscal cliff. bob now with ubs's art cash. over to you, bob. >> hello, maria. art, even though we're being smacked around by the usual l fiscal cliff headlines, the market still advanced today. actually, fairly broad. almost three to one. >> well, the market is looking at the calendar. it wants to hear sleigh bells. it wants to believe a santa claus rally is lurking there. the other thing it finds comfort in is it believes that as fractious as things can be, that the leaders in washington have learned their lesson. that the wrong word can move markets and they will be somewhat careful, that nobody will produce anything like the 500-point selloff in the t.a.r.p. vote. they think there's a minor protection there. nevertheless, we're in an age of auditory lottery tickets. whoever gets to the microphone swings things. >> yet, they believe that, number one, it's coming soon, that something is going to happen in december, and it's going to be a credible plan, something that's a real down payment that won't trigger some kind of ratings downgrade by the agencies. >> well, i think, again, they believe that these guys are chastened enough not to go off the deep end, and for all the talk, it might be go to go over the cliff for a little bit that people really think nobody wants to take that gamble. you don't want your political party becoming a footnote. >> materials, financials, health care all advanced today. a fairly broad advance, even if it was only fractional. back to you. >> all right, bob. thank you so much. we'll see you later. let's get a check on the winners and losers. jackie deangelis has that story. >> the markets closing higher despite turning negative earlier in the session. the dow logging a 47-point gain. today's leaders include kroger after stronger than expected third quarter profits. goodyear tire rising as well. amd putting its austin campus up for sale. big volume in that name. today's laggards include many of those retail names. kohl's, macy's, and gap. we saw tiffany lower after disappointing earnings. >> all right, jack. thank you so much. >>> fiscal cliff negotiations spinning the markets up and down like a yo-yo. i'll get reaction next from real estate guru barry sternlicht. also, we'll discuss how he's putting his investment firm to work. wait until you hear what he has his sights set on. >>> and stick around for my exclusive interview with the chevron ceo. we'll talk about whether dividends are in the pipeline or a big acquisition on the horizon. >>> and is it time to kill the $1 billion? the case is being made today on why $1 coins make more sense. do they really? stick around for that heated debate comes up. you're watching "closing bell" on cnbc. we're back in a minute. at u.s. trust, our expertise extends well beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their own legacies. [ male announcer ] the way it moves. the way it cleans. everything about the oral-b power brush is simply revolutionary. oral-b power brushes oscillate, rotate and even pulsate to gently loosen and break up that sticky plaque with more brush movements than manual brushes and even up to 50% more than leading sonic technology brushes for a superior clean. oral-b power brushes. go to oralb.com for the latest offers. >>> welcome back. starwood capital group has over $21 billion in assets under management. with the fiscal cliff hanging in the balance, how is the ceo putting that money to work? he joins me in a cnbc exclusive right now to talk about that and more happening in real estate and housing. nice to have you on the program. >> nice to be here. >> what are you hearing out there? what's your take first on the fiscal cliff? what are you seeing in terms of customers? how is it influencing your decisions? >> i'd say it's paralyzed everybody. you're hearing this from everybody. we all are sort of watching this dance in washington and not understanding, like -- i think it's common sense has left washington. you have to come up with spending cuts. i think those of us that will be targeted in a tax hike, which i don't consider a tax hike, really. i think the payroll tax cut, which didn't really work, it didn't boost the economy. also, the rising capital in income tax rates is acceptable, but only if the democrats get serious about cutting spending. >> so far, we haven't seen any real ideas in terms of -- >> it's a joke. it's a joke. you get more revenue from raising taxes, but you haven't cut spending. you're just putting off another disaster. it's so obvious you should raise the retirement age in the united states. there are easy, noncontroversial things. >> we're living until 100 now. we still vice president chanhad retirement age. >> i think $250,000 is a joke. if you have three kids in college, you're lost at $250,000. you can't afford to pay for your house and your kids' college. that's no longer rich in the united states. >> look, let's be honest. the average income, i guess, is $40,000. you know, you want to put it into perspective. $250,000, when you've got three kids in school and you've got gas -- >> and you live in new york. >> new york or california. you're living paycheck to paycheck. >> i think it's funny. it is the middle class that is getting squeezed here. there's a point where you're sending your kids to college and you don't qualify for financial aid. anyone making $40,000, they're covered. >> they're not paying income tax. >> the problem is, i think the whole -- what's lost on, at least to me, to the current administration, is you must get these people jobs. all of our resources, all of my tax increases should go to partnership mentoring, job training because the government gets 30%, 20% of every dollar i earn the rest of my life. you want me to get an education so off tie on my income for the rest of my life on earth. >> then there's the $16 trillion question. >> then the revenues. there's a lot of questions. >> here you are having been in this business for as long as you have. you're talking to people in real estate all the time. what are you seeing in terms of what they're doing now? does it make sense if you're sitting on something that you want to sell, you want to sell a home, a building, stocks, should you do it by year end given your cap gains tax is about to go higher? >> yes. if you have a long-term gain, you should definitely take it. in january, you'll be able to buy it back. the rules don't apply to gains. you can buy back the stocks take the gain right now and put it in your pocket and buy the stock back a day later if you want. it's likely that -- and i would think that our base case is cap gains go from 15 to 25 and add the 3.8% health care tax. i don't think the market will go up 14%. i do wonder where this tax selling is going to come in. have people done it? you saw the selloff after the election. i don't know what that was exactly. maybe that was the fact they knew we were going to hit a fiscal cliff discussion and people said, i'm out. i did selling myself after the election. in real estate, it's a longer term asset. as you're seeing in our property markets, it's what bernanke wanted. you're seeing an inflation in asset prices. but it is difficult to invest because you feel like this interest rate climate is being subsidized so artificially you'll get trapped. so you worry about a spike in rates because maybe bernanke retires, the policy changes, the economy does take off, asset prices begin to bubble up too high. i'd say it's not a big asset bubble yet, but you are seeing increasingly less discipline on the lending side. there's so much hunt for yield. the typical buyer of bonds and debt isn't doing the due diligence of an equity guy. they're buying bonds manufactured off the street. >> is that going to change in 2013? you were a romney supporter. do you have to change your strategy now that we know we have president obama for the next four years? he's got a much different mentality. >> i'm a social liberal fiscal conservative. my party doesn't really exist. i thought if the nation got burr rid under trillions of debt, there would be nothing to talk about. we wouldn't have a social agenda. >> we're close to it. >> 16 on our way to 20. then you lose options. you go over an edge where you're only services debt. today our interest expense is like $120 billion or so. 4% on $20 is $500 billion. that overwhelms all the discretionary spending. somebody has to get serious in washington. i'm hoping obama is coming to be a great president, which has come to the center. he inherited a bad economy. there's no doubt, right? but we haven't made a lot of progress. we haven't given business a lot of confidence. we have $1 trillion -- >> antagonistic with business. >> we would call it antagonistic. a lot of listening but not a lot of hearing. i'm supposed to go -- i won't say that. >> you're going to go to the white house. >> maybe. >> why would you go to the white house? you think he's listening? all these photo ops with all these ceos. >> do i have to answer this? >> what are they doing? why go? >> because he's the president of the united states. it is the white house. in the case, you can make an impact, you should do it. >> but that's the question. can you make an impact? >> at the moment, it looks like not. again, i said this recently at another conference. if you're a ceo, you're going to get your constituents in a room and not leave. you're not going to get in a plane, bring people in to antagonize the other side as rerecently did. you're going to sit in a room until you hammer this out. >> is it better to allocate money outside the united states? let me ask how you're allocating capital. there are some reports you're going to be buying a hotel chain from india's biggest real estate company. is that right? >> we're buying a hotel chain here in the united states from pimco. >> l & r property. >> that's different. that's from five different owners. >> what are you buying? >> the spread between yields on property and interest rates today, given how aggressive lenders are at the moment is the widest maybe in my lifetime. you can earn very attractive interest rate -- or cash on cash returns in property in the united states right now. it's probably safest, i think, around the world, the u.s. is the safest place to invest still. europe is -- we're active there. we have some stuff under contract. europe's growth is a lotless likely than the united states is going for. we have this rabid consumer. he's a little off today. his home equity is going up. he's spending money. in europe, europe hasn't fixed itself. there could be significant demand destruction like office demand, rents could drop. shoppers will panic if the the euro falls apart. so we're being very careful in europe. brazil is interesting. >> going down quite a bit, right? >> a lot. but it's also a lot of money out of the markets. we find it interesting. we have a very large partner in brazil. he's aggressively buying because there's better deals to be done. people thought capital would be infinite. prices have fallen, and people have too much debt. so they're willing to sell. >> final question here. if we go over the fiscal cliff, you're at a great spot to tell us what you would see in the economy. how tough would things be? how tough would it be for real estate and your business? >> i don't mind. >> if we go over the fiscal cliff? >> no. >> why? >> because i think it will teach everyone a lesson. >> unemployment goes up. >> look, i think -- it isn't actually the impact of that. i think it'll get people so angry with the administration and the republican party that i think you might see something happen, actually. maybe that's what it takes, a good crisis is a terrible thing to waste. >> we've heard that before. barry, great to see you as always. >> pleasure. >> thank you so much. chairman and ceo of starwood capital group. we're still waiting on house minority leader nancy ppelosi. we'll bring you that when it happens. >>> meanwhile, corporate america preparing for a worst case scenario. the chairman and ceo of chevron will join me. keep it here on "the closing bell." the interview you won't hear anywhere else today. >>> up next, is anyone bucking up to save the twinkie? kayla is next with the update on hostess suitors on the other side of the this break. back in a moment. or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use. it's the ultimate combination of speed, small size, and low-cost printing. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity. >>> i'm holding firm to the 250 -- >> house minority leader nancy pelosi right out of her meeting with tim geithner. let's listen in. >> that would be part of a big, bold, and balanced package that has big cuts. we've already voted for over $1 trillion in cuts. revenues are needed. job creation is essential to reducing the deficit. we firmly believe if you want to reduce the deficit, create jobs. you can grow the economy and reduce the deficit. it's all together. and that is attested to by every bipartisan task force, commission, you name it, that has come together. you can't get there from here in terms of deficit reduction and fiscal soundness without having revenues be on the table. i'd like to yield to the assistant leader for his comments. >> thank you, madame leader. i think that this meeting was very, very fruitful. it simply reminds us -- >> we are listening to commentary after nancy pelosi's meeting with timothy geithner. as you heard, ms. pelosi continuing to stick to her guns in terms of raising revenue as well as spending cuts. we don't have the clarity this market is looking for. that is, where will the cuts be? where will the revenue be? we're still waiting on compromise. as soon as we get some indication of that compromise, we'll bring it to you. maybe there's hope, meanwhile, for the twinkie. hostess says it's talking with more than 100 interested parties looking to acquire their brands. kayla is here with the latest. over to you. >> reporter: thanks, maria. from the fiscal cliff to the twinkies, it's the latest here for the hostess bankruptcy saga. a judge at southern district bankruptcy court here in white plains approved a $1.8 million payout to 19 of hostess' executives. that's excludeing the chairman and ceo greg raybourn. that will be an incentive payout to have the executives have the appropriate motivation to wind down the business. there are certain benchmarks and cost cutting and sale mechanisms this place. that's important because now the focus shifts to selling the 30 businesses left. of course, many of hostess' brands are extremely iconic. we all know the twinkie. we all know the ding dong. we heard today from the hostess lead banker running that sale. he said there are 110 interested buyers that are potentially going to bid. 70 of those buyers have signed nondisclosure agreements. he expects about 50% of those bids to actually materialize into real interest come december 10th. everyone is talking about saving the twinkie. when you look at the breakdown of the brand's revenues, it's the donuts that make the most money. they make almost three times as as much in sales as the twinkies. actually, the cup cakes make more than twinkies. no doubt a lot of these brands are getting a lot of interest from potential buyers. we'll certainly have to see what happens. it looks like january is when court ordained initial bids could come to the floor. we still have a lot to develop in this process, but certainly one we're watching closely. if you go online to our poll on cnbc.com, vote for your favorite hostess brand. 44%, the last time i checked, had voted for the twinkie. >> all right, kayla. thank you. >>> meanwhile, crude oil prices losing 10% of the value this year. does the head of one of the world's largest oil companies, chevron, think prices will bounce back above $100 a barrel any time soon? my exclusive interview is coming up next. he also has interesting things to say about the impact of the fiscal cliff is uncertainty. also ahead -- >> i don't understand his brain, so you should ask him. >> senate majority leader harry reid digging in his heels, referring to house speaker john boehner when asked about the republican's position that the ball is in the democrat's court. he said he doesn't understand his brain. we'll hear what reid's nevada constituents think about the job he's doing. >>> also, could our debt mean the death of the dollar bill? i don't mean the value of the dollar. i mean the actual dollar bill. it may be on the endangered species list. stay with us. back in a moment. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. >>> welcome back. chevron ceo john watson telling me exclusively today that the second largest u.s. energy company is moving forward on investments despite fiscal cliff concerns. we begin on our conversation, zeroing in on lawmakers' efforts in washington and whether he thinks they can work out a deal. >> i hope we can. there's greatty in the business community waiting for something to be done. there are big concerns about structural deficits going forward. there are concerns about tax increases that would be coming absent some sort of a deal on the fiscal cliff. >> the fiscal cliff has been the issue that has stopped or sort of made companies reluctant to push cash to work, to hire folks. is that stopping you, or are you moving forward regardless? >> actually, we've been moving forward with our investments. we're spending some $32 billion this year on energy projects around the world. i expect we'll spend even manufacture thmore than that next year. all we need is the opportunity to invest. we need to have access. we need permits, and we need a tax structure that supports what we do. there will be a tremendous opportunity to create jobs and government revenue if we're given that opportunity. >> let's talk about that. the access to the product all around the world has got p tougher, hasn't it? >> it has. i'm encouraged by the sale we had this weekend. i would encourage the administration to do condition sales. right now, most of our continental shelf is off limits. we need to address that. if we do that, there's an opportunity across public and private lands to create 1 million jobs a decade in this country. there's opportunity to literally create trillions of dollars in tax revenue and make us more energy self-sufficient. i think all those are good for the american people and the fiscal problems we have. >> the multinational companies oftentimes are seen by the public as these companies that spend jobs overseas. talk to us about that. what can you do to prove to the american people that, in fact, you are creating jobs in america, but you have to actually create jobs in places you're operating outside the u.s.? isn't that true? >> we do. i think the benefit is to multinationals in three areas. one is the wealth we create for americans. our to be is held by americans. chevron, for example, has created $170 billion in wealth through our stock price and dividends over the last decade. we also produce energy. every drop of oil we produce overseas keeps oil prices down in this country. >> yet, the oil companies as an industry constantly get bashed over taxes, over the profits that we see. in fact, in 2011, chevron was one of three oil companies that paid more in income taxes than any other corporation in america, which i find amazing. $17 billion in taxes. >> well, our income taxes in 2011 were about 43%. it's been in the same range over the last few years. we do pay our fair share. we pay taxes overseas. we pay taxes here. we pay other forms of tax as well. i think that story hasn't been told. the fiscal terms that are in place here for our industry, for example, if punitive taxes were imposed on our industry, would impact our investment. i hope that's not where we're headed. i think there is a case to be made that we pay our fair share of taxes, and i work hard to try to communicate that. >> talk to us about an energy policy. what would you like to see in the election is behind us. what should a proper energy policy look like to do everything you're saying, create jobs and, in fact, take advantage of this opportunity that america has. >> i think the energy policy sometimes is made more difficult than it needs to be. to me, there are three things th that you need focus on. do you want affordable energy, do you want secure energy, and the environmental characteristics you want. we talk about those one at a time. we need to talk about those together. >> let me ask you a few questions about from the investment community. i guess the biggest cloud hanging over the company is this $28 billion judgment by the court in ecuador. what can you tell us about that? what should investors know at this point in time in. >> well, the simple answer, this has been labeled an environmental case, but it's really not. it's actually a fraud that's been perpetrated on hair sholders of our company. we're going to fight it vigorously. basically, what we've seen is u.s. trial lawyers have gone to a foreign government, and they have bribed judges, they have blackmailed judges, they have ghost written expert opinions, they've ghost written court judgments. in our view, they've violated numerous laws, both in ecuador and the united states. all of it is available on videotape depositions and in e-mails because the crime fraud exception has been invoked by numerous judges in the united states. our strategy is to fight it, fight it hard. we feel we'll prevail in the end. >> i know this is a significant case, however, this is also sort of the normal for the industry, isn't it? this is the uphill battle you're fighting all the time, this hostility. >> rule of law, i would say, is the biggest risk not just to our industry but business in general. the world is becoming much more international and interconnected. it's very important that we have laws and norms that are functioning. so companies like ours and others can have a predictable and successful business overseas. this case is a little bit different in that it's a fraud. >> what kind of growth are you expecting in the next year at chevron? you've been outperforming your peers for many years now. what can investors expect? >> we have a good story to tell. with the investments that we're putting in place, we've talked about growing our oil and gas production some 20% between now and 2017. so that is in place. those plans are being prosecuted today with all the projects we have under way. the most notable are two big natural gas developments in australia. >> so $22 billion in cash on the balance sheet. what are you planning on doing with that money? >> certainly in the near term, our plans are to continue to invest it wisely. we have a robust plan to return money to investors. we've increased the dividend double digit rates the last few years. we've been repurchasing $5 billion in shares per year. depending upon the economic conditions we see, oil prices, et cetera, i think there's room for both of those to be continued for many years to come. >> in terms of the dividend versus the share buy back program, what's a priority, and does the new law in terms of dividend taxes dictate your decision? let's say, hypothetically, that we go off the fiscal cliff and dividend taxes go to 44%. does that dictate how you pay dividends versus share buy backs? >> well, we've talked to our shareholders about that. so far, it isn't. whether that will change going forward, i don't know. so far, our shareholders seem to like the fact that we've increased the dividend 25 years in a row and that we're returning cash to them. we're doing it in a balanced way. we're doing it through dividends. we're also doing is through share purchases. we have plans to continue our strategy of increasing dividends as the pattern of earning and cash flow permit going forward. >> what's your expectation for oil prices in the year ahead? >> my predictions haven't been very good in the past, but i think we're in a period where i wouldn't be surprised to see a sideways market. we could see some ups and downs depending, of course, on events in the middle east and expectations around the condition of the economy. >> in terms of the economy, are you worried about 2013? a lot of talk about recession, particularly if we were to go off the fiscal cliff. what's your take on economic landscape in the next year? >> i think there are mixed signs out there. there is great apprehension in small business and in business at large with the prospects of tax increases or dramatic spending cuts that might trigger triggered. i think there's great anxiety. when there's anxiety, people generally don't spend money. the concern is well founded. >> and my thanks to john wattson. >>> political posturing on the fiscal cliff from leading republicans and democrats alike. >> i remain hopeful that productive conversations can be had in the days ahead. but the white house has to get serious. >> we have made our proposal. let them come forward with something. >> find out what senate majority leader harry reid's nevada constituents are saying about his performance. >>> also, is it time for the u.s. to join the ranks and put $1 billis to rest in favor of a $1 coin? believe it or not, people feel passionate about this issue. our heated debate is coming next. stay with us. system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. heartburn symptoms causedelieve by acid reflux disease. osteoporosis-related bone fractures and low magnesium levels have been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. >>> welcome back. a fiscal cliff deal could kick dollar bills to the curb. today, a congressional panel listened to reasons for and against replacing dollar bills with dollar coins. a government report says that move could save taxpayers nearly $4.5 billion over 30 years. as we look for ways to save in the debt debate, those numbers could entice lawmakers. former arizona congressman supports the switch. on the other hand of the coin is bankrate.com senior analyst klaus bell who says the government can keep the change and should stick with the bills. congressman, good to have you on the program. thanks for joining us. the gao says the savings could be $4.4 billion, of course over a 30-year period. is the savings really significant enough to make a dent in the deficit and worth a change to coins? >> well, let's be honest when we're talking about the kinds of deficits we're at today. $4.5 billion isn't going to solve the deficit problem, but i don't think it's anything to sniff at either. there aren't a lot of programs where we're going to save money without having any tax increase or cutting anybody's program. this does that. so, yeah, it's a real savings. it's a real savings over a long period of time. i might add that the canadians found that their estimates of the savings were way underestimated. in the case of canada, it was like five or six times as much as they actually saved. >> klaus, what do you think? why do you think paper is preferred? >> well, when you look at the gao report, a lot of that savings is actually additional reven revenue. that's going to be more money coming out of the keconomy and going into the government. there's not really a lot of cost savings if you look at the actual numbers from the gao. >> wouldn't coins be easier, especially for smaller transactions? >> well, i think, really, the market has spoken there. npr last year found a billion of these things hitting on shelves in a warehouse somewhere. i think if there was a real benefit to retailers, if there was a benefit to consumers, they wouldn't be sitting there. they'd be in circulation. >> all right. congressman, what about that? dollar coins have been in circulation since the 1700s. modern day consumers have always gravitated toward the bills. if they had the choice, why force the change? >> you notice that you don't go into a store and have a choice between having a paper quarter and a coin quarter. you get the coin quarter. it's the same thing with the dollar bill. the experience in all the countries, every major country that's done this, that once you make the transition, and if you make the transition as rapidly as possible, it's very, very successful. the canadians have had tremendous success with their along, their $1 coin and the $2 coin. same in australia and elsewhere. i hate to use the phrase, but it's common sense to say these small transactions really should use coins. i'm always trying to save enough quarters to stuff into the parking meter to get a half an hour of parking there. if you had a dollar coin, it would be easier to do that. >> it's also a heavier load to carry. that's another issue to think about. >> maybe not. i might be carrying a $1 coin instead of four quarters. >> okay. klaus, we spoke to jack dorsey recently. he created square, pay for things on your mobile device. does this whole move to mobile payment almost make this whole debate moot? >> yeah, it's interesting. if you look at the gao report, it says that the transition from dollar bills to coins would actually cost many hundreds of millions of dollars initially. we're going to pay up front to make this transition. then electronic payments become even more popular and kind of make this whole issue moot. it seems like a lot of that money will have been wasted. in terms of the weight, that adds a lot of cost to retailers. 5,000 $1 coins weigh almost 90 pounds. if you're a walmart or costco and getting lots of cash in every day, that's an additional cost you have to pay. >> what do you think, congressman, the move to mobile? >> there's no question we're moving more towards mobile, which is one of the reasons we need to have a modern currency. i remember this debate when i was chairman of the appropriation subcommittee more than a dozen years ago. they said, you know, we're going to all start moving towards electronic. it hasn't happened. i think you're always going to be using currency, whether it's paper currency or coin currency. what we need is a currency that's modern and one that people are willing to use. i think they're more willing to use coins for these kinds of transactions. >> all right. we'll leave it there. gentlemen, thanks very much. we'll be watching this debate. we appreciate your time tonight. see you soon. >>> rising above. just 32 days left for hour nation's lawmakers to reach a deal on the fiscal cliff. jane wells has been hitting the road to find out whether constituents think they're getting the job done. jane is just back from harry reid's hometown of nevada. >> yeah, and i've been carrying around this purse full of coins which weighs about 100 pounds. not a fan. maria, harry reid's state has been hit harder in the downturn than any other state in the nation. the recession has affected every industry there, even the wofrrls oldest. >> how's business? >> it's been better. >> susan austin runs a small business outside reno, nevada. but her business is different. it's a brothel. the legendary mustang ranch. >> this is one of our suites. this is the asian suite. >> austin thought the world's oldest profession would be recession proof. not true. >> a lot of my high rollers suddenly discovered they didn't have the discretionary income. they couldn't play as hard as they used to. well, that definitely dug into their wallets, which definitely affected us. >> lance gillman owns the brothel. will the fiscal cliff impact the mustang ranch? >> well, if folks run out of money and jobs, i suppose it could. >> gillman is a republican who is looking to nevada's powerful democrat, harry reid, to keep that from happening. >> do you like harry reid? >> harry reid and i have been friends for 30 years. harry and i both share a vision and a love for the state of nevada. >> susan austin says even here the cliff will hurt. >> anything that happens in washington affects everybody in the united states. it's going to trickle down to me sooner or later. it's definitely going to hurt me in the end. >> now, the ranch owner says political leaders need to realize money is on the sidelines until confidence returns. as for susan austin, you can see her entire interview on the blog funnybusiness.cnbc.com. back to you. >> thanks so much. we'll be watching that. jane wells. >>> two more companies announcing special dividends tonight. here's a quick market flash. >> that's right. national beverage confirming its board has decided to distribute a special dividend of $2.55 a share. the record date will be december 7th. also, regal entertainment announcing $1 per share for its class "a" and "b" common stock. these two companies among many others declaring special dividends ahead of the end of the year as the threat of the fiscal cliff looms. >>> all right. thanks so much. let's forget about the fiscal cliff for a moment. find out what will move your money first thing tomorrow morning. stay with us. we're back in a moment. oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no you're not. i know. you know ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. >>> welcome back. one more day in the green. this has investors are digesting comments on the fiscal cliff. what does tomorrow hold? we have 30 seconds on the clock for each of our next guests. they'll tell us what they think will move your money tomorrow. good to see you, gentlemen. thanks so much for joining us. brian, we'll kick it off with you. 30 seconds on the clock. what do you want to look at tomorrow? >> on the economic front, we get personal income and spending. the chicago pmi. i don't expect that to move the market a whole lot. again, it continues to be all about the fiscal cliff. geithner, boehner, and reid and any little nugget of information we get there continues to whip saw the market. don't expect any changes tomorrow or really next week until we get more clarity on that situation. the up shot of that is companies continue to make these special dividends, borrowing cheap in the bond market in many cases and continue to pay these dividends before the end of the year. >> all right. we'll be watching that. darren, you're up. 30 seconds on the clock. >> i'm looking at the euro. looking for the pullback to the 129.50 level. i do think we're going to hold that level and push higher. that will push risk assets higher as well. i'm looking for a consolidation of the s&p overnight. once we get through chicago purchasing managers, i think we're going to reverse to the up side. we'll end the week on a strong note. again, it will be whippy with headline to headline. i don't think we're going to get many headlines into the weekend. >> all right. thanks so much. last but not least, peter, you're up. 30 seconds on the clock. what do you want to look at? >> thank you, maria. in real estate, it's location, location, location. in markets tomorrow, it's the cliff, the cliff, the cliff. it has created some volatility, which has given us opportunities to look for good growth stocks like church and dwight and motorola solutions to buck purchase recently. i hope to find more tomorrow. thank you. >> all right. we'll be watching that. thanks very much, gentlemen. it sounds like with all this fiscal cliff stuff, you guys are a little bit on the sidelines. is that a fair statement? real quick, yes or no. >> you pick your spots. >> i think a lot of big money is on the sidelines, but i think that it's a good opportunity to be in. >> thanks, you guys. see you soon. we appreciate it. with the fiscal cliff getting closer and closer every day, my thoughts on the lack of leadership in america. that's up next. stick around. what starts with adding a friend... ♪ ♪ ...could end with adding a close friend. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. [ male announcer ] the way it moves. the way it cleans. everything about the oral-b power brush is simply revolutionary. oral-b power brushes oscillate, rotate and even pulsate to gently loosen and break up that sticky plaque with more brush movements than manual brushes and even up to 50% more than leading sonic technology brushes for a superior clean. oral-b power brushes. go to oralb.com for the latest offers. [ female announcer ] today, it's not just about who lives in the white house, it's about who lives in the yellow house, the green, and the apartment house, too. today we not only honor the oval office, but we honor the cubicle, and the home office as well. because today it's about all of us. and no matter who you are, you're the commander-in-chief of your own life. ♪ >>> welcome back. finally tonight, my observation on what we saw today in the fiscal cliff mess. namely, the absence of leadership. the election is over, but sadly, the rhetoric continues. today, once again, worries over the impact of the looming fiscal cliff drove markets and drove sentiment. as you know, at year end, the bush tax cuts will expire, triggering the biggest tax increase since world war ii for virtually all income levels. along with those tax increases will come reckless and blunt spendin spending cuts that will lead to mass layoffs while pushing the economy back into a deep recession in 2013. thun of these issues, of course, are a surprise to anybody. washington set this deadline for itself a long time ago. yet, here we are once again. a month and a day away from a self-inflicted disaster. and both sides scrambling for a deal? no, not at all. instead, what we heard today was both sides scrambling to point the finger. listen to this. >> now is the time for the republicans to move past this happy talk about revenues, ill-defined, of course, and put specifics on the table. the president has made his proposal. we need a proposal from them. >> what we don't know is what the white house is willing to do to get serious about solving our debt crisis. >> so i ask, where is the leadership from our elected "leaders"? i'm not seeing it at all. will it come from the president? will it come from the democratically led senate? will the gop controlled house do it? where is it? do you have faith in any of them to rise above? this is not a political game. what happens between now and the new year impacts people's lives and their livelihoods. right now all i'm see
CNN
Dec 4, 2012 11:00pm PST
they still can't see the light when it comes to the fiscal cliff. 28 days to go. what will it take to get a deal? >>> plus, the stern warning for syria from nato. the use of chemical weapons will bring an immediate reaction from the international community. we ask our panel if the united states will go to war. >>> and a new hollywood movie about the hunt for osama bin laden sparks oscar buzz and outrage. questions over just how much confidential information the film makers had access to. an "outfront" investigation. let's go "outfront." ♪ >>> good evening, everyone, i'm erin burnett. "outfront" tonight, let there be light. finally, some bulbs turned on in washington this evening. well, on the congressional christmas tree, that is. pretty beautiful. lights, love, camaraderie, song. but while our lawmakers took some time to celebrate together, they still weren't showing any spark when it came to negotiating a deal to avoid the fiscal cliff, which is the christmas present the country needs. today we heard president obama's response to the proposal that house speaker john boehner put on the table yesterday.
MSNBC
Nov 30, 2012 6:00am PST
a f fiscal cliff deal. what's the latest and is this posturing, kelly, or is this real? i mean, is this disagreement about kind of laying out the stakes of where everybody stands and what they're willing to give or is it a possibility that we don't get a deal? >> reporter: well, you do hear rumblings, chris, about no deal. but at the same time people are saying there's still some negotiating time left and a bit of optimism. when you heard the tone of what was unfolding yesterday, it was kind of shocking to republicans who would say that the president's offer is so far from a negotiating point that they are surprised not so much that these are the positions that we're in because much has been the president's public rhetoric but in terms of real negotiating they say they were surprised this wasn't the kind of offer that would have happened some weeks ago, meaning right after the election if you want to start there. but now with just four weeks to go they felt the president needed to move further. democrats believe these are the priorities that voters reinforced with their ballots on
CNN
Dec 4, 2012 8:00pm PST
the fiscal cliff deal the president presented. boehner offered a proposal yesterday. i asked cole if he's frustrated with john boehner. >> no, not in the least. look, i support the speaker. and we're actually not very far apart on anything. and, you know, at the end of the day, he's going to negotiate a deal. it will probably be a challenging vote for a lot of people. i always support him. i would expect i will again and try and persuade others. just to be clear, i'm not for raising taxes on anybody. i think it's a mistake. i think all republicans believe that. however, you have to recognize the reality that at the end of the month, tax rates for every american that pays income tax are going to go up. so there is an area that we do agree with the president on. that is 98% of the american people, getting about 80% of this tax cut shouldn't have their taxes raised. so my suggestion -- it was delivered, by the way, in private and leaked and put in public. but that's fine. i mean, it's certainly what i said. my suggestion was let's take the one area that we agree and take it off the t
CNBC
Dec 7, 2012 1:00pm EST
the january options. i think you look at december options, they're not going to probably be able to tell me anything because i'm starting to convince myself that this is far more about taxes than other reasons. >> i would guarantee if there is a fiscal cliff agreement, this stock shoots up big time. >> capital gains. that's all about capital gains in my mind. i cited other things i think are a problem but capital gains is why they're selling. >> have a great weekend, everybody. "power" starts right now. >> announcer: halftime is over. "power lunch" and the second half of the trading day start right now. >>> indeed it does. and today on "power lunch," no progress. a very stark assessment from the house speaker on where the fiscal cliff talks stand with 24 days to go. where should you put your money heading into this weekend? could be a very crucial weekend. >>> no worries. with the unemployment rate still near an 8% level, why some companies can't find workers. there's work and it is not a skills gap. we'll show you what else is being factored in to that equation. >>> and no fair, perhaps? well, a big change at big blue. ibm changing the way it pays down its 401(k). will other companies follow suit? tyler mathisen, my partner, who is always fair, always working, and is always a work in progress, according to this, is at new york stock exchange. hi, ty. >> i am the ultimate work in progress. thank you very much. >>> despite the assessment from the speaker of the house on the fiscal cliff, the fact he says there is no progress being made so far, the dow sort of playing past it. right now the industrials up by 46 points at 13,120 and change. apple is part of the nasdaq. apple down $14 a share. another 2.66% today as scott mentioned a moment ago, $50 billion in market value shaved off of apple this week alone. >>> let's begin with those comments just 24 days to go until america confronts the fiscal cliff. house speaker boehner coming out earlier today and saying no progress has been made in the negotiations. our chief washington correspondent john harwood is here with the latest. >> reporter: we ended the week with a fairly perfect, simple, clear, elegant expression of the partisan differences in this fight. speaker boehner came out and gave a press conference where he essentially said president obama has done nothing to compromise with republicans. here's the speaker. >> four days ago we offered a serious proposal based on testimony of president clinton's former chief of staff. since then there's been no counteroffer from the white house. instead, reports indicate that the president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff. >> reporter: not surprisingly, democratic house leader nancy pelosi had precisely the opposite explanation for what is behind this stalemate. she says republicans simply echoing the white house are going to have to buckle on the issue of the top rates. >> the only obstacle standing in the way of middle income tax relief are the republicans unwillingness to ask the top 2% to pay their fair share. >> but tyler, as you suggested, this is all a work in progress. the thing we cannot see that is not visible to the public or to the press is what's going on behind the scenes. staff discussions resumed yesterday. don't know how fruitful. i haven't gotten much of a signal from people on either side that a deal is close, but they're work rg at it and sometimes these situations can turn around quickly. >> john, what of the reports today that perhaps at some point the republicans in the house and in the senate would go along with the idea of extending the bush era tax cuts for the under-250 cohort of taxpayers, but let the rest of the thing just go off the cliff? is that a possibility here? >> sure, it is. there's a significant number of different possibilities from going over the cliff for a brief period of time, going over further, from resolving the sequester part of the cliff but not the tax part. all of these things are elements of the broad discussion we've been having in this town for a couple of years about tax rates, about entitlement spending, about deficits that have topped $1 trillion throughout the obama presidency. i suspect all of them eventually are going to get settled but they aren't going to get settled at the same time, including the debt limit increase. >> john harwood, thank you. >>> let's see where we do stand on the fiscal cliff deal. let's look at our "rise above" meter. time to stop talking and start actle. we were at a half-way point, now back to a quarter on the "rise above" meter, closing to no deal than deal. >>> lawmakers trying to solve the fiscal cliff issue. police trying to solve a burglary at the home of california congressman darrel issa. according to reports, more than 50 pieces of jewelry worth about $100,000 were stolen from the congressman's home on november 29th. watches, earrings, rings, bracelets involved and what issa spokesperson calls irreplaceable family air looms. >>> to the jobs report today. super storm sandy slammed the east coast but it looks like it didn't have all that much impact on the labor market. november jobs numbers coming in much stronger than expected. steve leisman who's had a very busy week here to talk about the numbers and put it in context for us. >> hi, sue. no substantive sandy in the jobs numbers. the lack of sandy effect has us scratching our heads, what they said. i just got off the phone with the guy who's the head of doing the numbers, labor numbers at the bls. he walked me through the rather extensibilive process they did fine out if there was any sandy effect, including sampling of businesses in a flood tide areas. >> it was very meticulous. >> i'm pretty convinced they did a good job figuring out if there was an effect and there is no effect which brings us to the numbers which you could believe on face value as much as you can. they'll revise this again. they only come forward with 60% to 70% of the sample. unemployment rate falling 7.7% because largely a drop in the labor force. average hourly earnings up 0.2%. despite positive headlines, xwoeld man sax says we interpret this report as one only slightly better than expected overall given downward revisions and weaker labor force and it does not change our assessment of the underlying strength of the labor market. private sector up 147. manufacturing down 7,000. services doing pretty well, up 169 though that number could have been flattered by retail hiring up 53,000 because early thanksgiving, early retail hiring. confidence numbers. on the right part of your screen, we have decline in consumer sentiment all because of the speckations index not because of current conditions. >> terrific, steve. well deserved weekend to you. >>> in today's yahoo finance question, have we turned the corner on jobs. vote on that, go to yahoo.finance.yahoo.com. >>> jim iuorio, how should you play those job numbers of earlier today? >> first of all, i look at these numbers from a lot of different angles. i don't see anything we can characterize as just more than okay bordering on good. you look at the unemployment rate, that number by itself is largely useless unless you take it in context with the participation rate which was not very good. what i expect will happen now is next week we have the fed who is going to reassure of its commitment to keeping rates low. i don't think money is going to bounce far out the risk spectrum. i think money will tip toe out risk spectrum and largely end up in companies like coca-cola, johnson & johnson that represent some stability to people and some yield when you get 1.5% and change in the 10-year. that's where i think the sweet spot is. i'm sure some money will jump out -- >> those who perhaps have a better appetite for risk. but not everybody does going into the end of the year. speaking of dividends and capital gains, apple once again down another 3%. >> speaking of risk. >> well, or not. if they reach a fiscal cliff agreement, can you have people piling in. >> there could be a knee-jerk hire. i'm still very concerned about apple. not long term as all. it is still 2002012, people may still want to book capital gains. i think it has to be closer to new year's for me to get interested in apple. >> have you looked at the options market action in it? i don't know whether you have. >> i glossed over it and hasn't given me anything substantive yet. >>> i want to draw our viewers' attention to avon products. this is a rare one to leave the s&p 500 but that's what's happening right now. shares up almost near the highs of the day here at 5.2%. analysts aren't exactly sure what's behind the move but still, it's one to mention. remember coty offered to buy avon a couple of times earlier this year. they walked away from that deal twice. in a year we're down more than 15.5% on avon products. >>> automakers revving up sales. mercedes-benz posting its best results ever in america. the ceo of the u.s. division will join us exclusively to talk about how he plans to keep those sales motoring along and whether he is hiring. >>> speaking of hiring, with millions still out of work, why are manufacturers having a tough time filling new positions? phil lebeau searching for answers? wheeling, illinois. >> tyler, the answers will surprise you. at this plant, the ceo says i would hire ten people immediately if i could. guess how many applicants he has for some of the jobs right now? zero. we'll explain why when "power lunch" returns. music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. >>> jobs are front and center today despite an unemployment rate hovering near 8% in the manufacturing world. growing problem that is frustrating many executives. plenty of job openings but they can't find people to fill them. what's the problem? phil lebeau knows. he's at a manufacturing flant wheelin plant in wheeling, illinois. >> this surprises a lot of people but at this company, they've got ten openings. i've heard this from other manufacturers as well. they can't fill the jobs. it is not a skills gap. it is because they can't find applicants willing to take the job. look at how many manufacturing openings have come up across the united states over the last couple of years. it's gone from roughly 90,000 up to a quarter million. that's how many manufacturing jobs are open right now. when you look at some of these companies, like here at afilion, they have jobs gone unfilled for months. what do they do here? they turn to lights-out manufacturing. essentially, they take these cnc machines, computer programmed machines, they will program them during the day, turn offer the lights, go home and they have product waiting for them in the morning. the ceo says he has no choice because he can't fill the second and third shifts. >> i sometimes wake up in the morning and i'm thinking, maybe people really just don't want to go to work. maybe it's easier to just stay at home and not work. i don't know. >> all day long we've been doing this story and i've been getting e-mails, people on twitter saying you can't live on what these people are offering. they're starting at $1 an hour. you do the makth, that comes ou to $520 a week before taxes, $26,000 for the year. if you can't live on that, how are you living on unemployment at $450 or $500 a week? for a lot of manufacturers, they're frustrated that they can't bring people $13 an hour, then walk them up the pay scale to $20 or $25 an hour. >> phil will join me in this conversation. mercedes-benz usa posting an all-time sales record with november sales of over 32,000 units. joining us in the "power lunch" exclusive, steve canyon, mercedes-benz usa's president and ceo. phil will pick up on the auto questions but i'd like to talk to you about the economy in general. your company has such an interesting footprint in the united states. you are hitting an all-time sales record, yet people are still worried about the economy. tell us how business is and how you view the economy right now. >> business for us is great. we're going to set an all-time record. in fact we'll finally surpass our all-time high in 2007. in 2007 just before the recession, that's when the auto market was around 17 million units. it's only going to hit about 14.5 this year but despite that we're going to surpass our sales record from 2007. even though the recovery has been mixed and unemployment has stayed high, we are bucking that trend with a pretty positive sales result. >> does the fiscal cliff debate and the lack of a resolution at this point impact your business at all? are you hearing from your customers that they might put off a purchase or they're worried about making a purchase given the lack of resolution in washington? >> predominantly it is the uncertainty. on the consumer side, absolutely it has an impact. kind of daily reports of doom that come out all of the media channels. zblipts's playing out on our channels. >> it reinforces consumer skepticism. absolute impact on consumer sent many so it leads to postponing. i think we see that. we sell sprinters, it is a commercial vehicle that's aimed solely at small businesses. in the fourth quarter we have seen a softening of that even though we're up 25% for the year. a slight slowdown in the fourth quarter and that's because small businesses are absolutely postponing purchases as this fiscal cliff debate wages on. >> phil, over to you. >> thanks, sue. steve, i'm curious from your perspective, you look at what happened with incentives for the luxury automakers last month. you guys were putting out $4,800 per vehicle that you were selling. that was the incentive according to truecar.com. other luxury brands were matching as well. how much richer can you make these deals in order to close out the year as the luxury leader? >> we are absolutely 100% in plan for what we spend. it is very typical at the year-end event. all manufacturers sell a bigger portion of their cars in the fourth quarter than they do in the previous three. so this is very much business as usual and consumers are very price point sensitive right now. we are seeing great demand out there but consumers still love a deal and we send out that signal that during this limited period during year end they're going to get a special deal and that's what's filling up our show rooms right now and leading to record sales. >> two quick questions. in terms of credit quality, can you lease your car through mercedes-benz. a lot of people do. are you finding balance sheets of most consumers are healthier now? >> absolutely. in fact, over the last several years, folks have been paying attention to their balance sheets so we see that. our customers tend to be on the higher end anyway for mercedes-benz purchase but they are -- >> in much better shape. >> they're in fine shape. >> good luck with the super dome, by the way. the name mercedes-benz is on the super dome. are you the sponsor this year for that particular venue. any odds on who's going to be in the stadium? >> lots of people at 110 million people are going to be watching and what's nice about it is we're launching an all-new product for mercedes-benz. that's why we're so e sited about next year. we'll introduce a new product representing our gateway to the brand underneath our c-class. we're opening up the mercedes-benz franchise to a broader, younger audience and using that mass read super bowl in the mercedes-benz super dome to do that. >> good luck. nice to have you here. >>> ty, over to you. >> this story is causing some outrage. ibm reportedly overhauling its 401(k) plan in a way that many think is not favorable to workers. if other companies go along with the idea, it may have huge ramifications for how much you could have in your 401(k) at retirement. could also impact how money flows in to the markets. >>> plus, former aol ceo steve case is going to join us to outline his big plan to get america working and keep the u.s. firing on all cylinders on innovation. >>> that and more when we return on "power lunch." maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. [ male announcer ] this is amy. amy likes to invest in the market. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade. >>> welcome back to "power lunch." i'm courtney reagan with a quick "market flash" for you. we want to take a look at shares of apple. we've been watching them very closely. it now appears we are at that death cross. that means with today's decline, apple's 50-day moving average is now below the 200-day moving average. apple's shares down 2.6%. >>> ibm drawing fire over its plan to overhaul its 401(k) program. the "wall street journal" says ibm now plans to contribute a lump sum once a year payment, end of the year, to employee accounts instead of making those contributions twice a month. if other companies follow suit it could have huge implications for investors. joining me now to discuss this, bob pisani and john carney of cnbc. gentlemen, welcome. bob, i get how this is not helpful to workers. you lose the benefits of any dollar cost averaging. you may be ending up getting a lump sum at the end of the year. and if you leave the company before the end of the year, you don't get anything. but what's the real ben fet efi ibm? >> they save on administrative and accounting and they may have even constudies that indicate they'll actually save by make being the lump sum payment because you don't have to put it in certain times of the year and there may be overall cost savings for them. i don't think this is good news for employees at all. it's not just the loss of dollar cost averaging. i think that people may end up putting in less to their account and that's the overall issue. >> i guess savings might accrue from a fact if a worker leaves in july, ibm will have put nothing in for their worker or september or october or whenever. you got to be there into late december to get something so there are some savings there, but beyond that i don't get it. >> i bet what they're doing here is investing part of this money during the year and so they're taking the money that you would be earning if you were paid throughout the year and being a crewing it to themselves. i think it is a terrible deal for workers. what it really does is it puts you at risk for your company. if you get laid off or let's say you worked for lehman brothers and you had one of these plans, you would actually not get paid at all because they went bankrupt in september. you're taking the credit risk. >> i think there is a broader legal issue. if i leave in september and can't collect that money that's due, that payment, that's money i have earned. the company has promised me. i think there is a legitimate legal question around this. >> and it does weird things to the market because all of a sudden instead of money coming in throughout the year, you're getting a giant influx of money that has to be invested in some way all at once. it's very strange. >> bob, ibm is just one company, albeit a large one. but if other companies went along with this and made a year-end deposit into accounts, what kind of liquidity boom would you see at the end of the year for stocks? >> you might see some kind of liquidity boom, yeah, i would agree with that. but let me tell you something -- they're a market leader in this area. ibm led the way a few years ago when they eliminated the pensions for new employees. now a lot of companies routinely don't do it. look at the assault on retirees savings efforts. they're not doing a pension anymore. pensions are under assault. social security's going to be cut back. now 401(k)s are getting -- they're finding ways to squeeze that. this is a real problem for people saving for retirement. >> the world is a different place these days. john, bob, thank you. we'll see you later on the power rundown. one of the topics we'll talk about is the netflix ceo getting an s.e.c. notice because of a facebook posting and so the question is, are regulators behind the curve when it comes to overseeing social media. >>> google plans to start charging small businesses for its free services like e-mail and google docs. will consumers be next it with those fees? >>> from "50 shades of grey" to 5,000 shades of green, publisher random house giving employees a lot to cheer about this holiday season. we'll explain when "power lunch" continues in just a moment. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. [ male announcer ] break from the holiday stress. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? >>> half past the hour. that means gold prices are closing. sharon epperson has been track being the action for us all day at nymex. >> we're looking at a lot of action in the gold market in this session on this jobs report friday. as we saw gold prices plummet when that number came out to right around $1,685 an ounce. closing right now though near the highs of the session around $1,705. the key here of course has been this range that gold prices have been in for the better part of the month with the low side around $1,680 and the high side around $1,750. what is interesting is what has happened despite the decline we've seen this week in the gold price. the slight decline there. the resilience of the retail investor, the fear trade, the safe haven trade definite rly o that traders and investors who want etfs are going for. they want the gold and silver largest etfs and increasing their holdings there. those levels for the holdings are near record levels even with the price price lag we've seen in the flat price of gold and silver this week. >>> bob -- still talking about that ibm story but let's talk about the trading action today. >> we are basically flat for the week, up a little bit today but this is about as sideways as you're going to get in terms of the markets here. major sectors, industrials up fractionally. energy stocks okay. tech, materials a tough week to the downside, weighed down by apple which lost about $50 so far this week. financials were the big gainers. big comments this week about job layoffs but most of those big names were up again today. these stocks have turned around here. bank of america now well north of $10. home builders having a very rare down week. but up a little bit here today. i anticipate 30% increase in orders next week. kb home also to the up side. horton announces a dividend acceleration earlier today. finally noting here, courtney just mentioned apple and there you see apple down -- apple was $585 at the start of the week. that's $50 off of apple this week. >> the dow is higher today. we'll go up town in a moment to the nasdaq and seema. could you imagine what the dow would be doing this week if the apple were in it? the dow is a price weighted index. >> that's why it would not be in it. they'll have to do some kind of split of apple to put it in there. $600 -- >> can you imagine? >> $50 right now would have dropped hundreds of points off of the dow. hundreds. >> seema is up at nasdaq where it is very hard, seema, for the nasdaq market to make progress when apple isn't. >> absolutely. apple is the topic of the day, of the week as well. definitely a volatile week for shares of apple. want to point out at this point, nasdaq is underperforming the major indices. that weak consumer sentiment number offsetting the better than expected jobs report but back to apple, the stock now is on track to have its week in 2 1/2 years. more than $45 billion in market cap washed away. taking a step back though, looking at other tech stocks moving lower, ceo john chambers of cisco outlining its forward looking strategy at an analyst event. he spoke about taking a more diversified approach to i.t. as the networking demand slows and that cisco has gone too long without making a major acquisition. that stock moving lower in today's trade. quick look at deckers outdoor, the maker of uggs, getting a pop on renewed speculation it may get bought out according to street account and a seeking alpha article. >>> to chicago now, let's find out what the bond markets are doing and to get the news on the layest jobs report from rick santelli. >> cnbc does the best job covering the employment report. though the headline number was better than expected there is a lot of issues there. like all the people scotty beamed from planet unemployed earth to somewhere else, they're just not counted. if you look at the 10-year, it popped up a bit. we're several basis points higher. one-week chart virtually unchanged. open it up to beginning of august, still hovering at the low end of the yield range, high end of the price range, hovering close to the downside pivot which we've been talking about for months, 1.60. euro versus the dollar, it did get hit on the number right there at 8:30 eastern but it has come back a bit. on the week currently at 29.30. closed the week at 29.90. that's a decent down week especially from levels above 1.30. dollar/yen lots of excitement. dollar really popped but it is everything's come back to unchanged. when you look at a one-week chart, 82.37 now, closed at 82.50 last week, virtually unchanged. back to you. >>> slew of companies announcing special dividend hikes in an effort to avoid higher taxes if we go over the fiscal cliff. more than 100 companies have announced more than $20 billion in payments in q4. let's get you up to date on big ones for today. shoe carnival declaring a special cash dividend of $1 a share. america's biggest home builder dr horton accelerating all of its 2013 dividend payments into this year. jb hunt transfor the pulling forward its quarterly dividend into this year as well instead of february next year. the move is on in a big way. >>> mixed news on the economic front. the november unemployment rate falling to 7.7%, the lowest since december of '08. beware of the cliff. house speaker john boehner today saying no progress has been made on resolving the looming fiscal cliff. more morial, former mayor of new orleans. we'll talk about the giants and the saints at the end of the segment. you must be encouraged by the unemployment rate coming down and the growth in jobs despite several headwind in the economy. >> it's better news. it's 33 months of continued job growth but make no mistake about it, the economy is still in suspended animation. still not growing fast enough to make up for all the ground we lost. but whenever there's job growth, it's something to say thank you for. to be hopeful that we're going to have a better future sglp one of the things that occurs to me as we pivot to discussing the fiscal cliff, in this country the thing we have lacked for 25 years, 30 years, is income growth. the result it seems to me is that we have substituted the growth of debt for the lack of income growth. what would you say we need to do to reduce the debt growth and increase income growth? >> we need wages that grow as fast as inflation or faster than inflation. >> how do you get that? >> well, it is difficult. i think we've got to stop the outsourcing of good paying manufacturing jobs and rebuild those kind of industries. many of them were in urban communities that gave people who may not have had a college education a chance with a good skill to earn a good living. take care of their family. we've seen -- really we've lost so many of those jobs by outsourcing. it was good news this week -- >> when you hear apple saying they're going to build a factory -- >> congrats to apple and i hope apple will do more and more companies will do more to ensure jobs as opposed to offshore jobs. >> yet phil lebeau was just at a manufacturing facility in wheeling, illinois where they have ten openings on the assembly line. they pay something like $13 an hour, $26,000 a year. you're not going to get rich on that but that's a job. and the ceo of that company said that he's having trouble filling it, in part because people say i'd rather stay on unemployment. now that's his surmise. >> i wouldn't agree with him. think the job training system in america is misaligned with job openings like the type that that ceo has. i could send him, if you give me his name, 13 people who do want to work. some of them may not have the skills that they need. so that's why in the fiscal cliff negotiations it would be counterproductive if congress cut invest. >>> in education and job training to "reduce the deficit" in a way that would impact future economic growth. we've got to fix the workforce investment, the job training system in the united states to prepare people for the types of jobs that ceo has. >> you've been there, you've had to forge deals between warring constituencies. fiscal cliff. what would the solution be if you were handling it? >> i like the idea of the president, john boehner, the key players, getting together with no staff in the room. the second thing, they've got to be guided by a couple of things. number one, what is best for the nation? not my party, not my philosophy, not necessarily my politics. number two -- >> you'd like it one on one. >> editd' i'd like it one on on discuss specifics in a one on one way. second, they may agree there should be short-term steps and long-term steps, i think we can get there. the nation is counting on them doing something significant. >> saints/giants this weekend? >> i've got to go for the saints. i'm -- >> they both need a win. >> give me a break, giants fans, if you see me. >> mayor morial -- thank you. >>> netflix ceo getting a notice from the s.e.c. over his facebook posting. did he actually violate rules or are the regulators simply behind the ball when it comes to social media? >>> plus, former aol ceo steve case joins us. he'll outline his big plans to get america back to work and how to keep america great when it comes to innovation. all ahead on "power lunch." tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 their equity ratings show me how schwab tdd#: 1-800-345-2550 rates specific foreign stocks tdd#: 1-800-345-2550 based on things like fundamentals, momentum and risk. tdd#: 1-800-345-2550 and i also have access to independent tdd#: 1-800-345-2550 firms like ned davis research tdd#: 1-800-345-2550 and economist intelligence unit. tdd#: 1-800-345-2550 plus, i can talk to their global specialists 24/7. tdd#: 1-800-345-2550 and trade in my global account commission-free tdd#: 1-800-345-2550 through march 2013. tdd#: 1-800-345-2550 best part... no jet lag. tdd#: 1-800-345-2550 call 1-800-790-3801 tdd#: 1-800-345-2550 and a global specialist tdd#: 1-800-345-2550 will help you get started today. so, the 5.3-liter v8 silverado can tow up to 9,600 pounds? 315 horsepower. what's that in reindeer-power? [ laughs ] [ pencil scratches ] [ male announcer ] chevy's giving more. get the best offer of the year -- 0% apr financing for 60 months plus $1,000 holiday bonus cash. plus trade up for an additional $1,000 trade-in allowance. hurry. bonus cash ends january 2nd. >>> i'm courtney with a quick "market flash." shares of macy's spiking as the company authorizes a repurchase program increasing their program by $1.5 billion. you can see shares spiked on that news, falling down just a little bit. still that is the reason for the move we just saw. >>> in today's yahoo! finance question we asked a stronger than expected jobs report. have we turned the corner on jobs? 18% say yes, the economy is getting stronger. 32% say no. more americans have just stopped looking for jobs. 16% say the jury is out, still worried about the fiscal cliff and 34% say i think the number is bogus to begin with. let's see what's coming up on "street signs." >>> wow. not sure i can top that one, tyler. but thank you. have we become a nation of pessimists whether our expectations for job creation has dropped so low or are we just realists? netflix ceo getting himself into hot water with a facebook post. does the s.e.c. really have a case against him or do the laws need to change with regard to social media? >>> and could pot help us solve our fiscal problems? guys, we are calling this the fiscal splif and we will rise above it, mon. "street signs" it is australian for business news. >> thanks, brian. see you at 2:00 p.m. >>> steve case is one of america's greatest entrepreneurs, best known as co-founder of america online, along with dozens of other investments such as living social and zip car and really too many to name. these days mr. case, together with scott case, no relation can be head up start-up america partnership to fuel entrepreneurship outside of silicon valley. and case squared, if you will, joins us now at cowboy stadium in arlington, texas where they are hosting a start-up event. i want to get to start-up texas in just a few minutes but steve, if i could start with you, talk to us about the entrepreneurial environment right now in america. we hear two things. one, we hear that when the economy is not doing all that well, it's the best time ever to try and start something new. and then on the other hand, we hear that a lot of what's going on in america is keeping entrepreneurs from starting those new ventures. >> well, some of that is true. start-ups are down in the last five years. about 23%. but it is worth remembering that we started as a start-up. this company was a start-up in the last couple years, the reason we're the leading economy is because of the entrepreneurs building start-ups that have really powered our economy. we really need to as a nation double down on entrepreneurship. some of that is what needs to happen in washington, the jobs act that passed six months ago, the broad bipartisan support dealt with crowd funding and on-ramp for ipos. start-up app 2.0 introduces with bipartisan support. there's a role for washington but there's also a role for the private sector particularly entrepreneurs. that's what start-up america is all about and this event in texas, try to highlight some of these great" that can create some of the next great companies that can start up our economy. >> tell me how your organization is working to foster entrepreneurship. >> we know start-ups are happening all across the country. we have tens of thousands of them in a part of start-up america in every state, places like iowa, indiana where we have talked about manufacturing. they're building in the next big giant companies. we're here in texas because texas is one of the leading start-up economies and we've brought together start-ups from all over the state of texas, austin, san antonio and houston and right here in dallas. we thought no better place to do it than to pitch a two-minute drill on the giant cowboys vision behind us here. but highlighting some of the great start-ups that are here. all the net job growth that's happened in the country in the last 30 years has happened from companies that are less than five years old. we're going to build these companies growing up all around the united states, they'll step up and bring america to the next game. that's what start-up america is all about helping these communities like texas raise their game and bring start-ups to the forefront. >> steve, you mentioned there was bisupport to create this organization. it is important to note no fund governmenting is behind it. >> this is a totally private sector effort to start-up america partners. the jobs act passed by partisan support and the need for bipartisan support around high-skilled immigration in particularpy half of the people coming to our universities for advanced degrees, ph.ds and masters are from other countries but all too often once we give them degrees we kick them out of the country and force them back to their country and they start companies there that compete with companies here. that's a big focus in washington and hopefully there will be broad bisupport when the congress reassembles in jn after they get through the whole fiscal cliff issue and focus on making sure we have the right entrepreneur policies so we can remain the world's most trurl nation. that's what will drive economic growth up from 2%, driving unemployment down from 8% or so. that will ensure our competitiveness in what's now a more competitive world. we have to double down on entrepreneurs. it is the secret sauce that's built the american economy. >> what about the fiscal cliff? you brought it up. do you think they will take us over the cliff at this point and how damaging if that happens would it be not only to entrepreneurship but to the country as a whole? >> i think it will be troubling. hopefully they won't. i know there is a lot of posturing and hopefully a lot of quiet negotiations happening and hopefully there will be a resolution that can build pore. it is important not just for the fiscal cliff. i think the country and actually the world is looking at washington saying can these guys work together in a collaborative bipartisan way to deal with fiscal issues, our entrepreneurship issues, we have to start building that bipartisan support. congress did come together, republicans and democrats, house and senate with support of the white house to pass the jobs act around access to capital for entrepreneurs so we have some example of that. hopefully that momentum will continue not just on the fiscal cliff in the coming weeks but issues like the start-up act 2.0 in the coming months. >> gentlemen, look good. steve and scott, come back and let us know how it went in cowboy stadium. >>> google plans to start charging small businesses for its free services like e-mail and google docs. will consumers like you be next? >>> and from 50 stradz of grshaf gray to 5,000 shades of green. employees at random house getting a big stocking stuffer this season. we'll explain. ears, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ >>> stock of the day and certainly the stock of the week has been apple. its worst week in two years, down now $15 a share today at $531.64. about $50 billion in market value sliced off of apple this week alone. >>> time for the power rundown. with us today, bob pisani and cnbc.com net net's john carney. john, start with you on google. pulling the plug on its free apps suite for small businesses. starting now companies with fewer than ten employees going to be charged $50, i gather per user, per year. what's this say to you about the possibility that they may start charging regular consumers for these -- >> i don't think they will start charging regular consumers but i think it is great that google is trying to monetize these very valuable products. i've loved gmail. i've loved all of google's office products. i think it is really nice to be able to access them anywhere and i think it is absolutely their right to start charging for it. i do think they're going to try to figure out how to charge even people for even more services but i don't think it will ever come down to charging just the ordinary consumer using their gmail account. >> $50 a year for productivity suite like they have. i think that's cheap. everything for free on the internet? get over it. it's not happening anymore. that model is going to go away. >> it's very cheap. $50. if you think of what people pay up for windows and for microsoft's office and for even apple's products, it is a lot more than that. this is cheap. it is a good deal for people. >> moving on to the s.e.c. slapping the netflix crow reed hastings with a wells notice over one of his facebook posts. are ceos a little bit clueless when it comes to social media? are regulators behind the curve? what's going on here. >> i don't want to sound too lawyer like but i'm not sure what he did is sufficient disclosure under regular fd. i was here for red fd in 2000. it happened because there was selective disclosure on conference calls that people couldn't get into. he put something out in the public but i don't know if that is sufficiently public enough. i don't want to sound too lawyerly but i think it might not be actually. >> i think this is ridiculous. it's far more public to put something on facebook than it is to file something with the s.e.c. where an average investor will never see that. the regulators are way behind the times here. if you want people out there disclosing, encourage them to put stuff on twitter, encourage them to put stuff on facebook and maybe the s.e.c. should start scanning those and picking it up rather than somebody having to pay a lawyer a bunch of nonfile some with the s.e.c. it's ridiculous. >> you could very simply cure this by having a notice made or public statement made by the s.e.c. that you must file a press release of some kind. >> right. exact exactly. >>> the xxx-rated bonus. random house rewarding its staff with a $5,000 bonus. anybody who's been there all year gets one thanks to the runaway success of "50 shades of grey." the ceo, bob, announced this last night or the night before at a cocktail party. he was pouring drinks. he said take the bonus and don't bother coming to work together. that's my kind of guy! >> now what exactly do you have to do for this $5,000? i'm sorry, all you have to do is be an employee? that's it? i think it's great. this is a great story. book publishing industry had a lousy year. revenues are down, employment opportunities in the business are down. it's shrinking. this was a little bit of good news. god bless the guy. >> i think it's really awesome that they're doing this for their employees and they're not even making them agree to be tied up and whipped or anything like that. so i think way to go -- >> that's what i was leading up to. >> really nice. >> guys, thanks very much. have a great weekend. sue? >> my, my, my, john carney. >>> in the next hour, the fiscal spliff. could pot be the key to a successful financial future? that's coming up on "street signs" at 2:00 p.m. eastern time. "power lunch" is back in two. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! ♪ when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. >>> s&p 500 basically flat. it has been hanging in there around 1,400 for a couple of weeks now. nasdaq suffering from the apple effect, down 17 points as apple loses another big amount today, more than 2%. industrials though are up, sue, by about almost 50 points. bob pisani pointed out today though if apple had been a part of the dow this week, the dow probably would be off about 350 points. >> certainly would have been a very tough week for the dow jones industrial average. jim iuorio has been with us all week. president at tjm institutional services, a cnbc contributor. you are watching yum! brands. >>> couple days ago yum! brands got annihilated based on some bad news out of china. it seems it
CNBC
Dec 4, 2012 2:00pm EST
dividend there >> you will be back with us again tomorrow. >> i will. >> thank you very much. pretty much does it for this edition of power lunch. >> we are up ten points on the average. s & p trying hard to cross into the green. nasdaq still negative. see y'all tomorrow. >> sue, thank you very much. street signs begins right now. >>> these right, tie less, the gop sending a big message, hey, blue states, you re-elected the president. you pay the bills. how they want to raise money and why your mortgage interest deduction may be at risk. >>> bill gross says this may not even matter. we still have way too much debt. bill cross is here with some investable ideas for you. >>> plus, extreme hoarding, dividend edition and we unveil the one sector of the stock market that nearly everybody agrees is a must own, man kim. >> hi there, brian. hello, everybody. get another slow day for the market, stocks moving between gains and losses. bob, i don't want to begin with the macromarkets. i want to begin with the retailers. yesterday, the s & p retail index hit a record high. today, not so much. >> i think that is a sign of a little bit bit of concern going on. show what you has been going on. a lot of the big retailers are weak today. comment specifically on gap but noted, for example that kohl's had very high inventory levels and a concern that might make the season more promotional and specifically affect gap. see it down 7%. other names weak as well a lot of retailers down 1 to 2%. show you what the cracks in retail, think cracks in the consumer overall here but we have got short interest increasing. that hasn't happened in a while. the weather's been unseasonably warm. the comps in 2013 a lot tougher because we'd great first quarter of 2012. and the consumer may be a little bit more hesitant. mandy, along the consumer lines, did you see what darden restaurant also to say, quite surprise, they are very good at managing their company and they came out, said they were disappointed by the recent promotions they had seen and were basically down. >> how dare you question the power of the american consumer. thank you very much. >>> the market does remain laser focused on the fiscal cliff, with just 27 days to go and less for the official congressional session. president obama and john boehner making comments on the issue a short time ago and according to our deal meter, there it is, still only a quarter of the way there. we have got all sides of this story covered. john harwood live at the white house. eamon javers on capitol hill and the president's comments. >> the president gave an interview to our colleagues at bloomberg and said a couple of things. first of all, his priorities now trying to break republicans in their resistance to raising the top rate by some amount, a stance republicans have been consistent on. more revenue, question, not higher rates, he is insisting on that as the price of negotiating with him. and he said the reason for that is if you take all of what can be raised in revenue from deductions that is politically realistic, not trying to take away the mortgage deduction in the face of tremendous resistance from consumers and the housing industry, you can only raise about 300 to $400 billion, but i think that is a promising indication from the president because then if you take, brian, $400 billion in deductions eliminated, you take, say, half of the rate increase, it would go to 39.6 by the president, that would raise about $500 billion. you put the 500 together with the 400, you are starting to get in the revenue range necessary for a deal. so, there are hints of a compromise. both sides still digging in on their core principles. i think making progress though. >> what about a cut balance though? would it be 1:1, $2 in cuts to 1 in revenue? do we snow do we know of any cuts? >> yes, the republicans have proposed the -- raising the medicare eligibility age and applying a lower inflation adjustment to benefits and other programs. real spending cuts, significant. the president has some other cats and dogs proposals, taking money from providers, some increase in costs for high-income beneficiaries you can the potential for the kind of spending cuts we are talking about p the administration counting in their $4 trillion argument, the 1 trillion that was saved in budget control act of 2011 and also some of the war savings. now, there are disputes over whether you can count things that are already happened or war savings. >> thank you, john harwood. some kind of revolt going on among the hard-core dig your hes in republicans that john boehner is caving. ammanoffers is live on capitol hill. how much has boehner alienated his own party trying to find middle ground? >> that is the big question up here on capitol hill today. speaker boehner walked by us a couple seconds ago, i asked him what he made of all this angst today on the republican side, the conservative side of the republican party, he just smiled and walked past our station here. did he not want to talk about this. tell you what senator jim demint said, from south carolina, said today speak speaker boehnerers a $800 billion tax hike will destroy american jobs and allow politicians in washington to spend even more while not reducing our $16 trillion debt by a single penny that is an indication of a minirevolt up here on capitol hill among conservatives who don't want to see taxes raised at all. very uncomfortable with that offer yesterday from the speaker's office. i have been talking to staff privately here on capitol hill, some republican staffers say they wonder whether or not even all of the members of congress who signed that letter, along with speaker boehner, some of the rest of the republican leadership, could actually vote for such a bill were it to hit the floor here. negotiations are going on, the question is how strong of a hand does john boehner have to make some concession over at the white house without losing folks up here? now, tactically this demint statement and conservative rebellion today could be useful to boehner, go back to the white house saying, look i can't go much further, see how outraged my guys are about this, man kim. >> indeed, walking a very fine line. thank you very much. >>> mean time, shout world's largest mutual fund positioning its $1.9 trillion in assets ahead of the fiscal cliff? bring in bill grace, pimco co-cio and founder and also friend of street since. bill, always good to see you. >> thank you, mandy. >> do you think we need to get ready to say hello to an era of american austerity? >> i think we do even chairman bernanke in a speech a few weeks surgted the standard 2 1/2, 3% historical growth for a time would be lower around he attributed that to, you know, risk aversion and to some extent, to the hesitancy over the fiscal cliff. but we would suggest at pimco that there's much more to this than just hesitancy over the fiscal cliff, basically, we have structural influences that speak to delevering, that speak to demographics, aging demographic, the boomers, that speak to globalization and technology, all of which has been labor and job unfriendly. so we think the united states is in a 1 to 2% growth environment going forward and investors should be used to. >> this >> is this whole thing a kabuki dance? you look at debt, the numbers going out, we are talking about, both parties are guilty of one thing, say they want to cut and cut that frnlts basically, the government has been running in balance. we are bringing in 15% of gdp. speaking one for one, that subjects that revenue should come down to 20 or 19. there should be a one for one give and take going forward between republicans and democrats. >> if you think we are headed for a difficult time, you know, as you say due to structural economic headwind, when and how do we pull out of it? >> with difficulty. i think policy you whether monetary policy or fiscal policy has to be directed toward -- toward growth. yes, that's mantra from both republican and democratic sides but basically, growth challenged, taken our growth from us in terms of job creation, we need to have policies that fight back, that either devalue the dollar relative to competition so our exports and manufacturing becomes more productive or from the standpoint of infrastructure so that we rebuild what we used to have in terms of an infrastructure that allows for productivity going forward. >> if we could add 1% a year to gdp for the next decade, talking about trillions of dollars in extra growth, much more that we are talking about in tax increases or in spending cuts. because politician both sides are talking mostly about taxes and cuts, do you get the sense, bill, that washington, d.c. has completely run out of ideas on how to grow the economy? >> i think they have. and i think economists have as well. we have been looking for the new canes for several years now. some suggest new spending, less spending. that basically has been fought out in euro land as well. to some extent, has been challenged because euro land is still in a recession. yeah, i think the world is basically in conflict between, you know, emerging and developed economies. the developed economies basically are old and basically levered ant developing economies are basically young and unlevered, without a consumpt n consumption-based economy. this clash of economies basically, mohammed al arian wrote a book three years ago, the title "when worldless collide," basically the worlds are colliding and difficult for policymakers to see how to resolve the situation. >> what san investor to make of all of this then, bill? what would you say your picks and pans to be able to still invest your money wisely? >> investors, if they are looking for growth and if they are looking for risk and that speaks to equities and other types of investments that are less safe than bonds, you know, they should look to the developing markets, mandy. that's where the growth is, where the underdeveloped basically fiscal and balance sheets are. and that's where they are going to experience higher returns. you know, if they are looking for safety, you know, they should look to the developed world to what we call the cleanest dirty shirts, to some extent to tips and to other safe assets that produce a low return, yes, but a safe return. so it's a developing risk and a developed derisking type of balance sheet. >> we are going to on the housing angle here, we are worried maybe some of the spending cut ideas or tax revenue ideas may come from mortgage interest tax deducti deductions, bill, a bit later on the show, are you fearful of housing or hopeful on housing? >> hopeful of house. just done an economics forum where that perhaps along with the cheapness of natural gas and energy in the united states and the future development of it, you know, are the two main proponents of growth going forward and so, house, you know, on a cyclical basis, not a longer term basis, i speak to the next one to two years is definitely a gross proponent in the u.s. economy. we are looking for, you know, u.s. growth of 1 to 2% and primarily because, you know, housing is now in an upswing as opposed to a down swing. >> we have a graphic for our viewer ares, thanks to our team for getting done quick, i just came across it, bill, the average home size in the u.s., not amount biggest in the world but gone up 30% since 1973, the average new car is 30,000 dollars. college costs out of control but never how anything how incomes have gone up. if anything, stayed the same or gone down. how the hell are we affording all this stuff? >> that is a great point. i would suggest and point out, in terms of evidence, the corporate profits as a percentage of gdp are at historical highs, 12 to 13% of gdp. what you suggest in terms of wages as a percentage of gdp is correct. for the past 10, 15, 20 years, real terms, wages have not gone up, corporations in effect, been eating their seed corn, denigrating their consumer base and difficult going forward for them to sell product to a consumer base that has very little spending power. >> we are paying very high cost for keeping up with the joneses, respect aren't we? thank you very much. >>> breaking news from jane as well as, a big breakthrough in the strike that has shutdown america's busiest port, jane? >> we sure hope so m, mandy. mayor via rig goer via rig goes from a trade mission, both sides agreed to federaled me yation. the strike will continue in the eighth day the clerical workers, despite being offered a generous pay package and generous package say their johns are being outsourced. shipping industries which run the terminals say they don't want to be forced to fill the job with union workers if they don't need to 40% of all container cargo coming in and out of the u.s. comes through that port. it is now trickling in and out. again, it won't affect stock shelves before christmas, but what we are hearing now you are going to see it after christmas for those afterholiday sale if they don't resolve this shortly. back to you. >> thank you very much. appreciate the breaking news. >>> all right, on deck, you fill in the bank, pay back is a -- how much letters that was? white gop's plan could target the says that the didn't vote for their guy, we will explain. >> we certainly l and also why the president's plan could be more dangerous to housing than anything else. stick around. tdd# 1-800-345-2550 you should've seen me today. tdd# 1-800-345-2550 when the spx crossed above its 50-day moving average, tdd# 1-800-345-2550 i saw the trend. tdd# 1-800-345-2550 it looked really strong. tdd# 1-800-345-2550 and i jumped right on it. tdd# 1-800-345-2550 tdd# 1-800-345-2550 since i've switched to charles schwab... tdd# 1-800-345-2550 ...i've been finding opportunities like this tdd# 1-800-345-2550 a lot more easily. tdd# 1-800-345-2550 like today, tdd# 1-800-345-2550 i was using their streetsmart edge trading platform tdd# 1-800-345-2550 and i saw a double bottom form. tdd# 1-800-345-2550 i called one of their trading specialists tdd# 1-800-345-2550 and i bounced a few ideas off of him. tdd# 1-800-345-2550 they're always there for me. tdd# 1-800-345-2550 and i've got tools that let me customize my charts tdd# 1-800-345-2550 and search for patterns as they happen. tdd# 1-800-345-2550 plus webinars, tdd# 1-800-345-2550 live workshops, tdd# 1-800-345-2550 research. tdd# 1-800-345-2550 whatever i need. tdd# 1-800-345-2550 so when that double bottom showed up, tdd# 1-800-345-2550 i was ready to make my move. tdd# 1-800-345-2550 all for $8.95 a trade. tdd# 1-800-345-2550 can you believe it? tdd# 1-800-345-2550 i love it when you talk chart patterns. tdd# 1-800-345-2550 trade up to 6 months commission-free tdd# 1-800-345-2550 with a $50,000 deposit. tdd# 1-800-345-2550 call 1-877-656-8765 tdd# 1-800-345-2550 and open an account, tdd# 1-800-345-2550 now with no trade minimums. >>> clear from the gop's latest proposal, they are saying to the blue states, you reelected the president, you cover most of the higher taxes. let's dig florida this a little bit with a columnist at the american enterprise institute and a cnbc contributor around michael lipped, policy director of the economic program and co-founder of the new america foundation. we know this everybody in dv has extremely long titles not tv friendly. jimmy, start off with you, because if you look at the gop's plan and the raising of revenues or taxes by the reduction of deductions and then you dig into the states where you get the most itemized deductions, whether mortgages, local, property, state taxes, he is -- the gop are going right after this the blue states. >> would you think. exactly right. particularly with the deduction for state and local taxes. talking the high-tax blue state, massachusetts, illinois, california, ones that went overwhelmingly for the president. >> they voted for the guy, i live in one of those states we get what we get, we don't get upset. >> think both sides should like it republicans should like it you are going after the blue state bus talking about upper income people for a great deal and the president wants more of those upper income people so the president should embrace -- embrace that plan. now you the mystery a little bit is why republicans don't blue they don't want to see taxes go up on anybody, maybe not john boehner, seems what you said earlier, jim demind mint and other folks, the rank and file don't. >> michael, a brave man, you differ from the opinion of our good friend, brian sullivan here. you say that the gop plan might adversely affect the red states more than the blue. >> the state and local property tax deduction would hit the blue states. other elements would affect republican voters in the red states. the home mortgage interest deduction generally affects small business owners, professionals, might call the small rich. on the spending side of the cuts in medicare, by raising the eligibility aim would fall heavily not only on democratic-leaning black and latinos but heavily on the white working class base of the republican party. >> well, michael, listen up, push back a little bit, i do get your point, the mortgage interest deduction enjoyed by all. say they reach a deal, you can deduct $1 million in mortgage interest, right, mortgage $1 million, you can deduct the interest. if they cap it somewhere around, say they dial it down, don't eliminate it, to $600,000, $500,000, that's going to hit the states where homes are the most expensive, which tends to be where incomes are highest, boston, new jersey, new york, california. >> that's right. look at their proposal as a whole. if you look at their preposed cuts and discretionary spending to the extent it is agriculture and military when it comes to discretionary spending cut us in general, the economic policy institute commit estimated that if you had a cap of 20% federal spending, which would entail deep discretionary spending cutses states that suffered the most would be the ones in the south and the great plains and mountain state, traditionally republican areas. >> jim, tend of the day how much of the gop plan is going to be taken up anyway? >> i think certainly, john boehner said something really amazing, which is he agreed to hire taxes scored scat s.a.t.ically you what jim demint was screaming about. you will have to come one entitlement cuts and ground by ground, inch by inch, rate by rate, fight for those rates so they get something they can bring took their own members. >> jim, you got kids, right? >> many of them. >> you know how it s don't you think this is how it is going to work? you the kid says, dad, can i have ice cream? no ice cream, not one bit. pretty soon, the kid has 2 1/2 scoops of chocolate syrup, may not have gotten the four scoops they ask for, not going to happen here. >> not in my house. no, we have austerity in my house. there's no -- there's no ice cream. there's no giving n i'm a hard liner. i don't think washington's quite as tough as what i am. >> glad i'm not growing up in your house, jimmy. >> wow. >> i give in to anything. and everything. just putting it out there >> wow. >> jim, michael, thank you very much for joining us. the meantime, we are calling this extreme hoarding, dividend edition, because more companies are paying billions and billions in special dividends. robert frank, by the way, who is getting the biggest payouts here? >> mostly ceos and company founders. more than 110 companies anumbers onned special dividends in the fourth quarter, three times last year's fourth quarter, all aimed at beating that potential tax increase on dividends. that tax now 15%, scheduled to go up to 43.4% on january 1st. now you companies have doled out more than $22 billion in special dividends this quarter. that's savings up to $6 billion in taxes. three of the biggest paydays will go to sheldon adeleson, tom frist and larry ellison. together, they will get $1.75 billion checks before christmas. and their tax savings there could be more than $490 million. so, what will they do with all this money? mandy, as you said, they are hoarding it. it is going into money markets, treasuries, some real estate but private bankers tell me it is not going into stocks or holiday spending, so it's not creating jobs. they are really just moving that money -- that income from 2013 to 2012. >> what does it mean in terms of the landscape next year? what is the impact on the economy? >> for the government, the biggest impact n 1986, we'd similar thing, capital gains went from 20% to 28%. what happened is capital gains collections doubled in 1986 and then fell by half the following year, we can expect our government will have more than expected tax revenues this year and next year, when taxes go up, everyone will say, see, the tax hikes didn't work, we actually collected less revenue. and so the danger is we build program of this year's revenue, forecast base on this year's tax revenue and fall short next year. it could impact spending this money is not out there not generating jobs, not buying things or, you know, building things. >> got leave it there great stuff as always. thanks very much. >>> coming up next, flu fears starting early this year. why this flu season could be the worst in years. >>> and later on, iran stays shot down an american drone. the navy says no you didn't. either way, our own phil lebeau has firsthand experience with a small drone playing a big role in this latest skirmish. icans be in charge of their own future. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ but they haven't experienced extra strength bayer advanced aspirin. in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit fastreliefchallenge.com today for a special trial offer. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] >>> we are keeping a very close eye on some of the biggest flu vaccine players why? well, the center for disease scroll out with a warning, the flu is offs to the earliest start in nearly a decade and you it could abad one. some school systems in kentucky and tennessee have just shut schools down because of an outbreak there. so let's bring in nbc's tom c t costel costello. you have been on the story. >> we have tennessee and kentucky, monroe county in kentucky. the bottom line is they have seen a jump in flu cases in five southern states. those are alabama, louisiana, mississippi, tennessee and texas. and because of that how early they are seeing this jump, we don't usually see it peak until january or february. the concern is the severity of this flu it could take a toll, especially on the he had elderly. they are saying, however, we think we have got a good match on the vaccine this year compared to years past. remember back in the 2003/'04 year, 48,000 people died from the flu. it was a bad year around thought the vaccine wasn't a good match. normally, 24,000 people die every year from the flu. that seems astonishing. 200,000 people are hospitalized every year. chances are you know what the symptoms are we will go through it quickly four, fever, severe aches, runny nose, congestion, a cough, even vomiting and diarrhea and most importantly for the children and the elderly, severe dehydration. that can cause people to go to a severe state and to the er. they dished out 112 million vaccines, a third of the population already vac sip nated, so the thinking is if it's a good match, that's an awfully good head start. >> good that it's a good match. my quick question here is if you have not got your vaccine yet, is it too late? are they gonna run out? >> nope. nope. got plenty and urging everybody to get it, if you have a child who is at least six months or old, get them vaccinated or two if you get sick, don't come to work and don't send your kid to school. >> understood. thank you very much. tom costello. >>> up next, straight talk. plus the one sector of the market people say you must own. >>> how the fiscal cliff maybe the single biggest threat to house. tell you how, coming up. and we can save you 10% on ground shipping over the ups store. look this isn't my first christmas. these deals all seem great at the time... but later... [ shirt ] merry christmas, everybody! not so much. ho ho ho! this isn't that kind of deal. [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. >>> street streit talk time, five stocks that you need know about. get to t metro pcs what is happening? >> falling. sprint up likely to make a counteroffer for metro pcs. sprint is focused on closing the soft bank rather than making a pcs bid. met rose pcs agreed to be taken over by deutsche telekom in october and then sprint a deal for metro pcs, all convoluted from a regulatory perspective. david faber said same thing weeks ago but the stock moving on the that reuters report. >> big lots the next one up. >> rising despite the ceo leaving, right? lower than expected loss and boosting of guidance, a big day for big lot, up over 12%. it was, at one point, may still be, the best performing in the s & p 500 this year. the ceo says they are well positioned for christmas. >> good. good to hear. >> i don't know what that means r they under the tree? >> maybe. doubt it. meantime, we are looking at apple tanking today. 10% to the downside. >> exactly down 10%. you are more of a medieval person, olive guard opinion, red lobster, they have been struggling. get this. darden, which owns those restaurant chains, sees earnings as much as 71 cents below current expectations for fiscal 2013. ceo called the quarter disappointing. same-store sales fell overall, retool the promotional strategies, famous for the all you can eat shrimp for like 9.99. not working like they hoped. >> francesca's big win today, an upgrade r. >> jeffreys a stock up to a buy to a hold. >> pep boys not pep pill. >> manny, moe and jack miserable. the stock or the company a third quarter loss, recorded big charges, same-store sales fell. 13 cents a share loss. we like to leave people with bright spots. glass half full. the ceo said the margin's entire sales are improving after the 19 straight months of declines. that's literally all i could get out of that. >> better than nothing. >> the most positive -- >> bright with a chance of showers kind of bright spot. kayla usual shirk i believe you have news on jpmorgan and outlook. >> smoke signal, insight on how jp morning, the largest u.s. bank by assets, expecting to perform the fourth quarter and beyond. bronstein, first of all, reiterating that banks still hit by low rates and high regulatory costs with jpmorgan specifically seeing a $400 million hit to profit in 2012 and 2013. can't make as much money on loans and deposits. jpmorgan set to see as 600 million hit to profit next year from the reduction of real estate loans as the bank continues to move to write more new mortgages with origination of those mortgages expected to be up in q 4, according to bronstein's presentation. the current quarter market's revenue trading and underwriting and the like, expected to be nearly 260% lower than the third quarter of this year, compared to the fourth quarter of last year, volume all but dried up, good year-over-year, fourth quarter compared to third quarter, the markets revenue down, banks incurring steep legal costs. litigation costs will stick around for a while unfortunately. >> bottom rain, guess who wins in all of, this the lawyers. thank you very much, kayla tausche. okay. >>> we are in the trench he is of the holiday spending season that can only mean good things for the likes of credit card stocks. joining us now greg smith, managing drerktd -- director at stone ag the stocks are 52-week highs is it too late to get in? >> we don't think so very good growth ahead. you look global labor day the fact that 80% of the world's transactions at the point of sale are still cash and literally half of the world is still on bank, that american there is a very, very long runway of growth for visa and master card ahead. >> don't have to worry about the fiscal cliff, people get struggled for money, taxes go up, the last thing they will pay is the credit card, greg. >> that is fair. don't forget, even if we fall off the fiscal cliff, still have to go to the grocery store, still do your every day spending, which is increasingly going on cards. this is also a little more of a u.s. issue. take master card, for example, 60% of the revenues come from outside of the u.s. i think you have to take a broader per smektive when looking at visa and master card. >> you like both the stocks but i believe visa slightly nudges out master card. why? >> yeah, over the long term, we do prefer visa a little bit a little larger. think they incrementally have a little bit better brand. there is an opportunity for them to buy back in their european division, which we think would be a positive transaction for earnings. not sure when that's exactly going to happen but that's something down the road. also, some outstanding litigation, there's this big merchant litigation against both companies. visa is less exposed than master card. but it's a tight call between the two. we like. >> are balances going up again, greg? you are right. i see a lot of people, grocery store, used to write checks or use debit now using credit cards, sure they tell themselves they will pay it all off at the end of the month. my guess is they don't. >> well, you know, we actually don't -- we track the transactions more than anything 'cause visa really doesn't make money off the balances, they make money off the actual transaction but to address your question, debit is still growing much faster than credit. so, i still think we are seeing sort of what i call healthier spending but i wouldn't be surprised to see those credit balances ticking up, certainly with all the holiday spending. >> a lot of companies handing out goody bags in the forms of special dividends these days, either of these companies candidates for that, greg? >> you know, yeah, that's good question. i think on paper, they are. they have strong balance sheets. they have a significant amount of cash on their balance sheets today. they could take on leverage to pay a big dividend but my bet is they will no i think both companies favor share buy backs, very active on that front, we are not expecting t they do have the capability if they chose to >> thank you very much, stern agee's will greg smith. >> i like your goody bag thing. label special dividends from now on stock swag. >> a contest. >> got redo this contest. >> we will get to that. >> that was a whole other -- not a goody bag. >> a baddy bag. >>> street talk bonus round because we know you love it. give you some more over the next few days, we are taking a very close look at middle market companies that could be on the brink of a breakout right, brian? for example, to kick things off, came up with a few publicly traded names to keep on your radar. for example, linkedin, dunkin' donut s, pandora and annie's a few maims in the middle mark that's could break into the big leagues. >> says who? >> i don't know. who? >> names that could break out. i could break out. i could break out of here, run down the road screaming. >> break out, too much chocolate >> dig into those more. dig into the dunkin' brand. >> middle market companies generally is revenues between 50 million and $1 billion and employ about 40% of america's workforce. >> how do they break snout still need the metrics. >>> next up, a tore of a small drone at the center of a potentially big problem for america. >>> later on, will the cliff crush the american dream? why the president's plan could punish anyone who owns a home. the fight next. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ >>> i'm bill griffeth, on the closing bell, how is this for the depresses plea diction, much more fearful than the fiscal cliff? famed fund manager jeremy grantham says his news on the road to zero growth. another side of that story and deal with bait the issue coming up. >>> also, the art of negotiation, we will hear from somebody who says lawmakers in congress should take a page out of wall street's book to reach a deal on the fiscal cliff. >>> and all-state ceo thomas wilson joins us to explain how a decline over the cliff would affect the insurance giant. maria and i will see you at the top of the hour, the annual chris mastery lighting at the new york stock exchange today and eye vanka trump will be along to help us out with that. >> wow. some of her own crystal there >> she is very beautiful, i have to say. >> i could say that, too, i suppose. but i won't. >>> iran says it shot down an american drone in the gulf. the navy is saying no. all of our drones are accounted for. what we do know is what kind of drone we are talking about. phil lebeau has experience actually with launching one? were you in the cia, phil? >> i wasn't in the cia, but i have launched, still -- >> you have to tell us. >> the scan eagle drone, don't like to call at a drone at boeing, made by boeing, subsidiary in oregon make it unmanned aerial vehicle. essentially, the navy, the intelligence, military, they have been using the scan eagle for a number of year, ten years they have been use it. costs roughly $100,000. here is the deal with this scan eagle it stays aloft for about 24 hours, continually circling over, monitoring and feeding back thermal images and their mom. used successfully a number of times and a number of missions. the interesting thing about this drone, set it up and launch it in minutes did it when we were out in the high desert in oregon, weighs less than 50 pounds, chromed by a mobile control unit that is nearby. it always has contact. there you can see it looking down on us after we launched it there for boeing, this has been an incredibly successful drone or unmanned aerial vehicle and we are going back ten years, back to when they first started producing it the scan eagle. but guys, the bottom line is this. even if the iranians were to capture one of these scan eagles, you know, it's not impossible that these things can be captured at some point. they fly around there until they are snagged or if they run out of gas, then they are gonna crash somewhere. i find it interesting the navy says we have not lost any of our drones. >> phil lebeau, thank you -- still interested why he launched one of those things. get into that later. didn't dig in enough of that. >> he was a spy, he couldn't tell us anyway? >> the rule of being a spy, if you ask somebody if they are a spy, they have to tell you. >> do they? >> no. >>> if you own a home, you might be worried that you will lose your mortgage interest deduction if we go right over the cliff. the president says yeah you might want to be worried, tell you why, coming up. >>> first, today's rewind. it was 21 years ago today, in 1991, that associated press correspondent terry anderson was released from lebanon after almost seven years in captivity. sfx- "sounds of african drum and flute" look who's back. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling around. yeah, you're the king of the jungle. have you thought about going vegan carl? hahaha!! you know folks who save hundreds of dollars by switching to geico sure are happy. how happy are they jimmy? happier than antelope with night-vision goggles. nice! get happy. get geico. fifteen minutes could save you fifteen percent or more. >>> it seems like no matter what the fiscal cliff deal eventually comes through as, the high end of the housing market may get hit. here's why. either incomes on the people buying those homes is going to go up, or there's a chance the mortgage interest tax deduction could be capped below at what it is now effectively raising the price of a mortgage and possibly lowering the value of a home. yesterday when the president was answering questions on twitter, one american asked just that. emma robertson tweeted, quote, as a homeowner, i worry deductions for homeowners will go away. the president responded that middle class deductions will get hit. if that happens, it could derail our fledgling housing recovery. >> anything which really flexes downward the deductibility of home mortgages is catastrophic to the recovery. >> is he right? joining us, edward, a law professor and the former chief of staff at congress's joint committee on taxation. edward, do you agree? will it hit? >> absolutely not. it will have some modest effect, but the fact is that interest rates jump up and down all the time. right now we have home mortgage interest rates at historic lows. i just refinanced at 3% plus. if interest rates go to 4.25%, nobody would describe that as a catastrophic hit to the home mortgage market. that might move the cost of housing one percentage point or so. >> i wonder whether -- and when you think about buying a home, a lot of it is psychological. do i feel i'm in a position to do this? if we limb nate or cut the mortgage deduction, it might be more psychological. >> you're exactly right. there's a big psychological impact for existing homeowners of having this deduction removed. for home buyers making a decision to buy a home, i agree with the other guest. people buy homes because they believe homes are undervalid or they want a wonderful place to raise a family. not because they're getting that extra $500 in annual tax savings. i'm not sure it will have any -- >> wait, $500 in annual tax savings? no, no, no. how about $500 a month. >> well, for jumbo mortgages, yes. >> here's my scenario. i did the math. if you have a $1 million mortgage. i know that seems crazy to a lot of people. come to new jersey, new york, massachusetts, san francisco, whatever. let's say they reduce the cap to $500,000 to $1 million. if you're buying that, you probably have an effective tax rate of 23 to 25%, which is about $6500 a year, $500 a month. >> a big impact to the wealthy homeowners. you're talking about whether this will have an impact across the market. on the average, it's only going to have an impact of about $45 month in tax savings to the average homeowner. that's not enough to effect people's decisions to buy. even for the super wealthy, $65,000 a year, we're looking at whether that amount was going to affect their decision. i'm not sure it will overall. >> you know, earlier on, brian threw out a fantastic stat where it was said incomes over the years have either stayed the same or gone down but houses have gotten bigger and bigger. if we get rid of the mortgage deduction, might it force us, however painfully, to live within our means more? >> exactly. the fact is that the home mortgage interest deduction is a subsidy that all of us pay to some of us. i live in california. by definition, i have a small house and a big mortgage. everybody else in america is helping to subsidize that by virtue of giving this deduction, which reduces my tax liability, in the form of the home mortgage interest deduction, in the form of the property tax deduction, and also the capital gains exclusion. if we have all the money in the world, we might continue that subsidy. the fact is we don't. if you add those three subsidies up, those three subsidies will cost american taxpayers about $750 billion over the next five years. that's an extraordinary subsidy at a time when people are talking about cutting food stamps, which gives an individual $4 a day on which to live at a time when we're talking about cutting early childhood education. if we're going to invest in america, frankly, i'd rather invest in america's children than in my overpriced home in california. that's the choice. >> on that note, edward, peter, thank you very much for weighing in. >> i don't disagree with them. canada has zero mortgage interest deduction and a stronger housing market. i don't disagree. >>> coming up next, we're ordering up a grand slam wedding. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. ♪ [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. a passionate belief, and the foundation on which merrill lynch has been built. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life.
MSNBC
Dec 4, 2012 6:00am PST
fiscal cliff. but we're no closer to a deal. joining me now is senator isa isaacson. good morning, senator isaacson. i assume you stand by what you said just two weeks ago. so let me ask you this. the initial offer by speaker boehner, is it fair to say -- is it fair that the white house is calling it an unserious offer since it doesn't do anything on tax rates? >> no, i dent think so at all. i think it's more reflective of a simpson-bowles. it's a first step. i made a living selling houses for 33 years. i don't get people together until they finally sit down 0 at the table and negotiate. it's still too much posturing, too much the president wants it his way, somebody else wants it that way. i believe tom coburn was right. it's time to sit down in a room, see if we can work this out. going off the cliff would be a stupid idea. >> i want you -- david brooks this morning writes this in "the new york times." republicans have to realize that they are going to cave on tax rates. the only question is what they get in return. do you agree? >> not necessarily at all, because i believe if y
CBS
Dec 7, 2012 5:00am EST
stalling talks that could send us off a fiscal cliff. in a surprise visit to a falls church family, the president emphasized he will refuse to sign a bill that does not raise taxes on the wealthy but republicans say that's a deal breaker. his stance they say proves the president is not interested in striking a balanced deal, simp in spending more and raising the debt ceiling. but the president says his main concern is certainly the middle- class families of america. he does not want to burden them with the potential $2,000 a year hike in taxes. meanwhile, republican senator jim demint of south carolina among all -- in the midst of all the fiscal cliff talks and the pressure that's mounting here on capitol hill, well, the senator resigned the senate yesterday. he said he's going to head a conservative think tank claiming he can do more there than he can do here in congress. we'll have another report in a half-hour. back to you. >> delia goncalves with that june date from capitol hill. >>> local lawmakers are talking to 9news about the fiscal cliff. maryland senator democrat ben cardin says with the government already cutting a trillion dollars, the republicans need to give on revenue tax hikes for higher income earners
CNBC
Nov 30, 2012 1:00pm EST
, rick. >>> 31 days left for lawmakers to reach a fiscal cliff deal. cnbc is heading to the home states of key congressional leaders involved in negotiations. today john harwooden in kentucky. senate republican leader mitch mcconnell's home state to find out how the fiscal cliff is impacting constituents there. >> reporter: in the senate, the challenges is bringing together red states and blue states. mitch mcconnell's kentucky is horse country. of the states represented by top congressional leaders, it's the reddest of all. >> among the top leaders of congress involved in fiscal cliff negotiations, the one facing the most home state pressure may be senate republican leader mitch mcconnell. he faces re-election in kentucky, a state where the tea party movement is alive and well. president obama may have won this election but two years ago leaders of the tea party movement elected ron paul's son rand as kentucky senator over an establishment republican. one leader of that movement who runs a high-end audio equipment business says they could do the same thing in 2014, and this time take o
MSNBC
Dec 2, 2012 1:00pm PST
number of top lawmakers sound very pessimistic about avoiding the fiscal cliff. what's your take? do you think that your colleagues are going to be able to hammer out a deal in the 11th hour? >> oh, i think so. i know that all of the talk that's going on now, some of which is posturing, but the -- >> most of which is posturing. >> -- but the president did put something on the table. he can't negotiate with himself, so where is the proposal from the republican party? what is boehner going to put on the table? what does he want to do? we don't know. we are waiting for him to do some kind of counter, to talk about what their preferences are. we haven't heard anything. >> might going over the cliff give democrats more leverage to get republicans to let the tax rates go up on the wealthy, since all the tax cuts expire at the end of the year? >> well, i mean, some people talk about that, but don't forget that this whole negotiation that took place over raising the debt ceiling caused sequestration, and that would mean tremendous cuts in social programs and defense. in the president's proposal, he's talking about delaying $55 billion in cuts to defense, and about $
MSNBC
Dec 7, 2012 11:00am PST
stronger. >>> time for the political postscript. john boehner said a fiscal cliff deal is no closer now than it was a week ago. nancy pelosi called for more urgency. >> four days ago we offered a serious proposal based on testimony of president clinton's former chief of staff. since then there's been no counteroffer from the white house. >> this is a moment of truth. the clock is ticking. christmas is coming. the goose is getting fat, but in many homes across america it's a very, very lean time. >> the goose is getting fat. this was the latest salvo in a week of ups and downs in negotiations as both sides engaged in a tug-of-war over tax rates and spending cuts. >> i was just flabbergasted and said you can't be serious? right now i would say we're nowhere. >> there shouldn't be anything offered in public. the president, speaker boehner in a room and nobody come out until it's solved. >> we have to see the rates on the top 2% go up, and we're not going to get a deal with it. >> the problem with the republican proposal is it does raise taxes. >> if they do not make this deal on tax ra
MSNBC
Dec 6, 2012 7:00am PST
>>> good morning. i'm chris jansing. it's the political question this morning. who do you trust to handle the fiscal cliff? 48% believe president obama and republicans will reach an agreement but 43% say they won't. meantime, president obama is giving a stern warning to republicans who may be trying to use the debt ceiling as leverage. >> if congress in any way suggests that they're going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation, which by the way we have never done in our history until we did it last year, i will not play that game. >> we should say that the president and house speaker john boehner did speak by phone yesterday. that was the first time in a week. no one is saying what the conversation was about. shortly after that call treasury secretary tim geithner went on cnbc and said the white house is ready to go off the cliff. >> if republicans do not agree to that, is the administration prepared to go over the fiscal cliff in. >> absolutely. there's no prospect to an agreement that doesn't involve those rates going up on the top 2% of the wealthiest. it's only 2%. >> i want to bring in "usa today" bureau chief and welcome to both of you. where are we in these negotiations, susan? >> i think the most encouraging thing was they agreed to the to characterize the phone call. the last time around the characterization of the phone call became a controversy in itself. i think it's pretty clear that the white house and republicans think the white house hand on this is strengthening. we see the polls that you mention, pew polls this week say americans trust the president more, assume if a deal is not reached -- trust the white house more, think if a deal isn't reached it, will be the fault of republicans and it is in fact easier for democrats to go over the fiscal cliff than it is for republicans because then all those tax cuts from the republicans are swept away. but it's too early. it's only december 6. we've got until december 31st and in washington that's a long time. >> a lifetime. you wrote yesterday the republicans are waving a white flag as big as a bed sheet. you wrote "right now bain ser hoping to lead his fractious gop to an orderly surrender. the question is no longer whether republicans will give on taxes, they already have. all that remains to be be negotiated is how they will increase taxes. s so what's the likely scenario as you see it now? >> the fact they have surrendered, saying we're offering up an $800 billion tax increase, that's a big deal but it doesn't save us from the fiscal cliff. as susan was suggesting, there's a long time to go between now and the 31st. they have to wait until that long because neither side wants to appear to be giving in too early. that means they've given away more than they had to. you've got the president out there stirring the pot, trying to bring public opinion more to his side. the republicans are struggling to find some message to keep up with it. the danger is this whole thing boils over in animosity before the 31st and they go off the cliff because they have antagonized each other so much. >> and speaking of antagonistic situations, there's been a lot made of the dysfunction within the republican party but there's an article on the front page of the "new york times" that suggests that speaker boehner is actually in a stronger position in his caucus than when he was elected two years ago. how is he doing, do you think? >> well, i think he's in a stronger position because republicans feel like they're in a weaker position. i think a lot of republicans who might prefer a different leader don't feel they have the luxury of that right now. in fact, even congressman kantor and others, who boehner didn't think he could count on the last time around, are being supportive. republicans are trying to calculate how much they have to give in now and is there a way to fall back with the idea of being able to move ahead in a more aggressive way next year. that's why you saw the president in a very preemptive way trying to rule out the idea of tying talks to next february to raising the debt ceiling. >> alan simpson, the co-chair of the president's deficit commission, was on the "today" show this morning and he said all this talk about either side being able to go off the cliff is ridiculous. let me play that for you. >> when you have leaders of parties and people from the administration saying i think it would be to the advantage of the democrats to go off the cliff or i think it will be advantage to the republicans to go off the cliff or the president to go off the cliff, that's like betting your country. there's stupidity involved in that. this is big time stuff. >> and there's also a question of how far the white house is willing to go to protect middle class tax cuts. are they willing to limit unemployment insurance, give up infrastructure spending, which is something the president has been talking about from the beginning, payroll tax cut. what's the white house plan here? >> well, alan simpson in addition to being an excellent dancer is a very shrewd political analyst. >> very hip, alan simpson. >> very, very, very good dancer recently. but, look, i think people talk in terms of political advantage and clearly the president is going to gain more political advantage from going off the cliff than the republicans are going to. that's where the polls are showing. that's clearly where there is going. that doesn't mean it's a good idea for the country or economically. the country is are they looking at their own political interests or do they actually want to make sure the economy stays out of recession here. this is a very dangerous game that we're playing with over the next four weeks. >> i want to bring in congressman tom price, a republican from georgia. he is the house policy committee chairman and a member of the budget committee. it's good to see you congressman. good morning. >> good to be with you. >> i saw an op-ed that you wrote pop up on the web site of the "atlanta journal and constitution" and it was headlined "a message to taxpayers e taxpayers" and it argues house republicans are the only thing standing between families and a tax increase. how is that? >> as you well know, the fiscal cliff we're talking about has all kinds of components to it. it's the estate tax death tax, capital gains, dividend, alternative minimum tax, all the things that will harm a vast majority of americans from a tax standpoint in a significant and fundamental way. we believe those rates ought no increase. the president is willing to play politics and take us to the brink of raising those tax rates on virtually every single american. that's not what we believe is the kind of activity will get our economy and jobs rolling again. >> the white house will argue they're not the ones holds out to protect the top 2%, that it's the republicans doing that. >> great point, chris, the problem is what the president is holding out for is a nonsolution. the tax increases that the president wants on the top 2% will run this government not for eight years or eight weeks or eight weeks but run this government for eight days, which means it's not a solution. the president is not interested in real policy solutions by evidenced by what he has proposed, he's interested in politics and that's the challenge that we have a getting through that and making certain that we not be talking politics, we talk about positive policy for american people, getting committee rolling and getting jobs created. >> the administration, as we've been saying, has said they're prepared to go over the cliff. we heard that from tim geithner. if republicans refuse to raise taxes on the wealthy and john boehner said yesterday that's unacceptable, though he admitted any revenue will be coming from the rich. let me play that for you. >> the revenues we're putting on the table are going to come from guess who? the rich. there are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates, which we believe will harm our economy. >> there are, as i'm sure you know, congressman, many gop, not just centrists but some conservatives, ohio congressman steve latourette, has argued giving the president what he wants and reducing the debt by $4 or $5 billion. >> it depend wlats what the pac is. this is an administration that has 1 trillion plus deficits for each four years. >> one part of that that republicans have talked about, that 2%, and whether you're going to protect tax break force them. steve latourette said some people who call me, they're more worried about the fiscal cliff than about rates going up a couple of points. thomas rooney in your party, if there is truly entitlement reforms that's going to preserve social security and medicare for generations to come, it's going to be very difficult for me to oppose higher rates for the rich. what about that? >> and to mr. rooney's point, if in fact there were fundamental, significant reform of medicare, medicaid and social security so that we in fact save and strengthen and secure those programs, just like we did in our budget,those were included in the president's proposal, then that's something that we would talk about and very seriously consider because there's where we got to get. we got to get real solutions. the problem with the president's proposal is it's not a real solution, it's all politics. >> congressman tom price, thank you for coming on the program. >> we've been talking about the president's advantage right now. so, karl rove was not about to sit on the sidelines. his crossroads gps is running a spot today criticizing the president over his handling of the fiscal cliff. let me take a look at that. >> no real reform. instead spending taxes. we neat bipartisan ideas we can all support. >> dana, is any of that going to make a difference or maybe a broader point is how much are outside groups generally, whether it's on the hill or on tv influencing this debate? >> if it works as well as karl rove's effort during the campaign, i think the president is going to ask him to run more of those ads because it didn't work out so well for him the last time. this is a little different from a political campaign in that spending by interest groups is probably not going to be big enough to crowd out all of this noise that's being made here. i think that interview you just had with tom price was extraordinary for what he didn't say. he didn't say i won't allow taxes to increase. he said it depends on what the overall package is. that's an extraordinary admission is for one of the most conservative congressmen in the house and i think it shows where these guys are headed. >> when you look at the polls and you see how the messaging is working, susan, and to what we've been talking, about the pressure that these republicans feel, in fact there are even some disgruntled republicans, frank wolf of virginia, i think, suggested every republican lawmaker should kick in five grand. obama is not letting up. he's going to detroit to sell his plan, visiting a virginia family today. how much of this is a messaging war? >> if you thought the campaign was over, wrong. if you thought this isn't the time for politics, incorrect. i don't know that the outside spending matters except at that it succeeds in shaping public opinion. these are a couple of weeks where public opinion matter. i think when people see the quinnipiac poll, that has an effect on their willingness to bend -- >> is what you heard in tom price's answer, the pressure? >> absolutely. i think the republicans have decided they have a losing hand at the moment, they can't hang tough and just refuse to negotiate. they're going to have to give in on something. how can they give in on a way that also achieves their objectives, for instance, doing something about entitlements. >> do you feel -- we're all getting, we're all playing a game of looking into the crystal ball here, but what do you think the chances are this is settled by the first of the year, susan? >> i think it is likely but not certain to be settled by the first of the year. >> about the same, dana? >> i think it's likelier to be settled in the first few days of next year once they've gone off the cliff. >> danny milbank, susan page, love having you on the program. >> afghan's president hamid karzai is blaming the u.s. for some of the security problems. he says part of the blame goes to private security firms and contractors brought in by the united states. >> al qaeda i don't think has a presence in afghanistan. i don't know if al qaeda exists as an organization as it is being spoken about. so all we know is that we have insecurity, part of the insecurity is definitely coming to us from terrorism and attacks of the taliban, part of the insecurity is coming to us from the structures that nato and america created in afghanistan. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees, like our tender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99. is bigger than we think ... sometimelike the flu.fer from with aches, fever and chills- the flu's a really big deal. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. prescription tamiflu attacks the flu virus at its source. so don't wait. call your doctor right away. tamiflu is prescription medicine for treating the flu in adults and children one year and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing. have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. the flu comes on fast, so ask your doctor about tamiflu. prescription for flu. music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. >>> one of the oldest old boy clubs in the halls of congress is now under a woman's rule. when new york representative nita was picked as the ranking member of the house appropriations committee yesterday, it was like watching conde rice swing a club at augusta. joining me is the woman behind the [ through, congresswoman nita lowey. good morning. >> it was an honor to be elected by my colleagues as the top democrat on the appropriations committee. >> this is a huge deal. it goes without saying. you've been in congress 25 years. things have changed a bit, haven't they, congresswoman? >> they sure have. when i came here in 1988, there were 29 women in the house. now there are 81. we have a speaker, who is now a leader who will be speaker again who is a woman. and our caucus really does look like maerk. and what's so exciting about it as a woman, i know that we bring our personal experience as a wife, as a mother to our job and it really makes a difference. >> you know, one of obviously the most powerful people in the country is the speaker. she's been a big advocate of yours. she did have this news conference yesterday touting the number of women in the diversity and leadership and she sent out a tweet boasting about that, clearly a stab at the republicans, who took a lot of heat because they appointed the first 19 chairs, all of them were white men and then they finally gave one leadership position to a woman. i asked your colleague marcia blackburn about this and she said, look, we haven't had a lot of women in congress for a long time, it's a seniority issue, we have people who are coming up through the ranks in local offices, we need to get them in congress. is what we're seeing with the republicans just a matter of they need to get more women in there longer or is it something else? >> oh, i think it's something else. our democratic caucus reflects america. in fact, we have the first majority/minority caucus in the congress for the first time. we represent not just women, we represent african-americans, we represent hispanics, we represent asians, we represent wives, mothers, sisters, daughters and that's why when we approach issues on appropriation like education and health care and building in infrastructure, rebuilding our schools, dealing with the environment, our perspective is absolutely essential. so you may have women in congress, a couple, but what really matters is to have women at the table so that our perspectives, our lifetime of experience can be reflected in the work we do. >> you've been at the table for a while but your influence is obviously increasing. tell me where you stand on fiscal cliff. what's going to happen here, congresswoman? >> well, i am hoping because i'm the kind of person that always worked across the aisle. in fact on my foreign-ones committee, kay granger and i have been called the odd couple, we work well together. i've spoken to hal rodgers, chairman of the appropriations committee, i'm optimist being that we can sit at the table and get these things done. comprehensive tax reform is going to take longer, but we can make sure that the middle class keeps its tax cuts. we can make sure we target some waste. you can have across-the-board cuts. we have to have a very clear plan to cut back on certain areas. we can't cut back on programs that benefit the working and the middle class. we have to make sure our kids are educated. we have to make sure they have health care. but there are places in the bill that we can cut, and we don't want to do it with a sledge hammer. we're wise enough to be able to use a scalpel. so, again, i hope that we can sit together, work something out and do it soon. frankly, the holidays are coming up and members of congress and their families deserve to celebrate, whether it's hanukkah or christmas, and we're adults. let's just get this done. >> congressman nita lowey, congratulations and thanks for coming on the program. >> thank you so much. >> gay couples lined up to be the first to be legally married in washington date. in king county, doors opened after midnight to distribute marriage license because as of today, same-sex marriage is legal in washington. however, the earliest those weddings it actually take place is sunday because there's a three-day waiting period after you get the license. ♪ the weather outside is frightful ♪ ♪ but the fire is so delightful ♪ nothing melts away the cold like a hot, delicious bowl of chicken noodle soup from campbell's. ♪ let it snow, let it snow [ male announcer ] you've reached the age where you don't back down from a challenge. this is the age of knowing how to make things happen. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. yeah we both relieve coughs, sneezing, aches, fevers. and i relieve nasal congestion. overachiever. [ female announcer ] tylenol® cold multi-symptom nighttime relieves nasal congestion. nyquil® cold and flu doesn't. >>> to politics now where crowds of people in washington state were lighting up to celebrate. the occasion -- marijuana is legal there now. washington and colorado became the first states to decriminalize pot, but the feds are issuing stern warnings. the u.s. attorney for seattle insists they will prosecute people caught smoking or in possession of pot on fed property, buildings or parks. >> some members of congress are packing their bags to head home because they thought the house was in recess but majority leader eric cantor extended the schedule yesterday. now congress will come back to work next week hopefully to get a fiscal cliff deal. >> maybe the movie "lincoln" will inspire senators to work together. a special screening is scheduled for december 19th. senate aides said they will not screen the movie on the senate floor but somewhere else. >> michelle obama has said over and over again she never wants to run for office but a new poll shows her leading senator mark kirk in a very hypothetical matchup. the illinois republican had a stroke last year. >> tonight the entire obama family will gather around the christmas tree. it just happens to be the national christmas tree. it will take place at 5:00 eastern time. >> if you read only one thing this morning, maybe you're already thinking about your new year's resolution to get in better shape. how could you resist this headline? my must read is courtesy of prevention magazine. it's on facebook/jansingco. yep, they're real. we've got more rollbacks on toys all december. wait, was that real? [ male announcer ] this christmas, get the hottest brands and rollbacks on the season's hottest toys, like the beyblade destroyer dome, only $34.96, the nerf elite hailfire, only $29.88 or select playdoh sets, only ten dollars. all backed by our low price guarantee. america's gift headquarters. walmart. ♪ don't know what i'd do ♪ i'd have nothing to prove ♪ i'd have nothing to lose [ male announcer ] zales is the diamond store. take an extra 10 percent off storewide, now through sunday. and with my bankamericard cash rewards credit card, i love 'em even more. i earn 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. that's 1% back on... [ toy robot sounds ] 2% on pumpkin pie. and apple. 3% back on 4 trips to the airport. it's as easy as... -[ man ] 1... -[ woman ] 2... [ woman ] 3. [ male announcer ] the bankamericard cash rewards card. apply online or at a bank of america near you. >>> another day, another controversy. this time out of the mouth again of former new hampshire governor john sununu. government sununu said democrats, quote, aggressively got out the base of their base. the base of their base that's dependent, to a great extent, economically on got policy and government programs, seeming to echo governor romney's 47% remarks. that same evening paul ryan appeared to reject governor sununu's comments, though he didn't address them directly. >> these attempts to divide americans into our voters and their voters, let's be really clear, republicans must steer far clear of that trap. >> joining me now, cnbc contributor tony frat owe and former white house deputy press secretary under president george w. bush and managing partner at hamilton place strategies kiki mclean, senior adviser to the 2008 hillary clinton presidential campaign. good morning. >> good morning. >> tony, do republicans sit back and wish governor sununu would quit talking? >> not only is it offensive to a large part of the lack trat, it happens to be wrong. republicans did very well and in fact governor romney did very well among lower income voters. so it's wrong but we shouldn't be talking that way. we should be talking about all americans and economic opportunity for all americans and trying to achieve that. that's the important thing. >> governor sununu of course has made controversial comments before. let me play for you what he said about president obama after the first presidential debate back in october. >> what people saw last night i think was a president that revealed his incompetence, how lazy and detached he is and how he has absolutely no idea how serious the economic problems of the country are. >> john sununu also suggested race was a motivating factor for colin powell to support president obama for president. is there really much of a constituency out there for that, kiki? >> i don't think there is. i think this is one of the problems that the national party is experiencing. there have been other leaders in the party who frankly promote these ignorant points of view. and engage in demeaning and frankly conversations and language that we teach our 10-year-olds that's just not polite, it not right and more importantly it's factually incorrect. they need to step back. if they need a briefing, i'm happy to bring some other democrats around the table and show governor sununu who the voters who supported the president really are and who the people in our party really are and maybe he can spread the word amongst some other leaders in his party. >> we were talking about this going into the break about the holidays coming up and a lot of people have that sort of elderly uncle or grandfather who always manages to say inappropriate things that you don't want to bring somebody outside the family home because you never know what they're going to say. is this, tony, a generational divide, the paul ryans and chris christie and bobby jindal? is it really that real divide with the very conservative wing of the party? and if either case, how do they bridge that divide moving forward? >> i do think there is a need to talk to america differently. maybe it is generational. i feel like i span that generation where i find myself now older than a lot of new republicans even elected officials right now -- >> they have the 80s class in now. >> i don't know how i became old but i have. but it does need to be a shift to new republicans. there a lot of them out there. frankly i'd love to see the media talk to a lot of new republicans, the jeb hencerlings and paul ryan and bobby jindal and marco rubio, a lot of strong, younger voices in the party i would like to see more on. i turn on the tv and see newt gingrich back on tv. he hasn't been a republican leader in about 16 years. that's a long time. we need to shift and hear some of the newer voices in the party. >> i have to say just because you have some gray hair doesn't mean you can say those things. this isn't just about being inappropriate. >> i agree, kiki. >> sometimes the truth is inappropriate. these are just dead wrong. they're promoting myths and unfactual statements and you just can't let that go. whether you're young or old, you know better than that and you shouldn't be doing it. >> i agree. i think there are smart ways to talk about a lot of these issues. i think we're going to get that opportunity and it's going to be a test for the party for how we talk about things like immigration reform. if we change how we talk about and think about the immigrant community in this country, that's going to make -- i think that's going to make a difference but it is going to be a test for the party on that kind of language of course. >> but it also means acknowledging the facts. it's not just how we talk about things in this country in a political discourse but it's agreeing to what the facts are. >> there are two issues we're talking about. one is facts and the other one is about a certain level of civility. i was reminded when i was watching the movie "lincoln" and tommy lee jones as thaddeus stevens. i wonder if there is a purpose, again, the facts are one thing but stylistically to vocifero vociferously stating your belief. nobody can understand where governor sununu stands on thing. >> listen, politics is different by passion, okay. but when you watch that film you'll also find that tommy lee jones' character had his facts right. that's why the facts do matter. you can be passionate, you can even show humor and chiding and an occasional thrust when you make your argument, but when you have your facts wrong and when you attempt to tear people down, that's when it's over the line. >> and i also wonder if it is part and parcel of the 24-hour news cycle. because if you say incendiary things, it's a way of sort of keeping yourself relevant. you talked about newt gingrich, who hasn't been in power in a very long time. you talk about governor sununu and this is maybe the way they try to keep -- >> there's a lot of tv space to fill. i don't like to get people off that lightly. just because the opportunity is there, they still have a responsibility to, as kiki says talk factually and talk in a way that is inclusive of all people. >> tony and kiki, great conversation. thanks to both of you. >> thanks. >> we want to confirm here now conservative south carolina senator jim demint is leaving the senate in january. if he does step down, governor nikki haley would be able to appoint a temporary replacement. are you surprised by that at all, tony? >> i am. it's the first i've heard of this. nikki haley would have an opportunity to name a replacement. you'd also have to consider nikki haley a strong candidate to run for that position. so definitely something a lot of people would want to look for. >> what do you make of this, kiki? >> well, look, i think that the conservatives in the republican party are probably looking for leadership. demint has been that consistently conservative person but i think we've got to hear from him why he's making that choice to leave the senate and do that. >> all right. thank you again both. i also want to say that i was also just handed this, that new jersey's governor chris christie just entered the white house through the west executive entrance but he apparently is there to talk about sandy aid. also making news, a massive recovery effort in the philippines after a cat traffic typhoon. at least 350 are diead, 400 mor missing. the u.s. department of state has sent its condolences. >> back at home, unemployment applications are way down. the labor department said the number of people applying for benefits dropped 25,000 last week to 370,000. unemployment applications spiked last month after hurricane sandy to almost a half million in the week of november 10th. >> accompanied by prince william, kate middleton left a london hospital for treatment of acute morning sickness. she will continue her treatment at buckingham palace. >> and there was this prank call to the hospital. >> that doesn't even sound -- i mean, that's ridiculous. the nurse ended up giving up personal information and the d.j.s say they never thought their fake accents would fool anyone. >> jovan belcher's daughter will get about $1 million from the nfl. the linebacker killed her mother and then killed himself. she will keep getting paid if she goes to college. right now her grandmother is caring for her. >> kobe bryant made history last night. he is the youngest player ever to score 30,000 points. he's only 34 years old. now he's in a very exclusive club. just four our guys have hit 40,000, kareem abdul-jabbar, michael jordan and wilt chamberlain. >> and why is this dog out for a sunday drive? we'll show you in "down to the wire" coming up in 15 minutes. >> another sign the banking industry in america is being permanently reshaped. huge cuts at citibank. how deep are these cuts and what's the industry saying about it? >> chris, citi said it's cutting 4% of its workforce. investors are thinking this is a the first in a series of steps that will shrink the bank to a more manageable and profitable size. the news not a total shot to the market. >> it also kind of feels, maybe because i live in new york, like there's a starbucks on every corner. sometimes it feels like they're less than a block apart. but i couldn't believe when i saw when was in the works at starbucks. >> just when you thought starbucks might be reaching a saturation point at home, there is room for it to grow domestically and globally. they are planning to increase stores in the u.s. by more than 20%, that's roughly 2,000 new stores in the next five years or so. part of the growth strategy includes a varied product mix, tea and juice. and in china and the asia pacific region, there's plenty of room to grow. starbucks expects china will overtake canada as its second largest market in 2014. >> great to have you. thank you. and forbes is out with a list of the world's most powerful people. number five, pope benedict xvi. bill gates is number four. of course the microsoft found are and philanthropist. number three, russian president vladimir putin. number two is almost the most powerful woman, angela merkel and number one was unanimous, president barack obama. ♪ everybody wants to rule the world ♪ r ] when this hotel added aflac to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! [ male announcer ] are you on medicare? do you have the coverage you need? open enrollment ends friday, december 7th. so don't wait. now's the time to get on a path that could be right for you... with unitedhealthcare medicare solutions. call today to learn about the kinds of coverage we offer, including aarp medicarecomplete plans insured through unitedhealthcare. these medicare advantage plans can combine parts a and b, your hospital and doctor coverage... with part d prescription drug coverage, and extra benefits... all in one complete plan... for a $0 monthly premium. no more than what you already pay for medicare part b. unitedhealthcare doesn't stop there. we'll cover 100% of your preventive services... like an annual physical and immunizations... and you'll have the flexibility to change doctors within one of the nation's largest networks, dedicated to helping you live a healthier life. other benefits can include vision and hearing coverage -- and the pharmacy saver program gives you access to prescriptions as low as $2... at thousands of pharmacies across the country, in retail locations like these. ♪ call to enroll today and enjoy these benefits... for a $0 monthly premium. most plans also include part d prescription drug coverage. your healthcare needs are unique. that's why, with over 30 years of medicare experience, we're here to guide you every step of the way. open enrollment ends december 7th. so don't wait. if you're medicare eligible, call now... and talk to unitedhealthcare about our plans, like aarp medicarecomplete. let's get you on the right path. call today. ♪ hi, i'm ensure clear... clear, huh? i'm not juice or fancy water. i've got nine grams of protein. that's three times more than me! [ female announcer ] ensure clear. nine grams protein. zero fat. in blueberry/pomegranate and peach. [ male announcer ] the rhythm of life. [ whistle blowing ] where do you hear that beat? campbell's healthy request soup lets you hear it... in your heart. [ basketball bouncing ] heart healthy. great taste. mmm... [ male announcer ] sounds good. it's amazing what soup can do. >>> it pays to be happy. according to a new study, people who have a happy childhood are more likely to be wealthy in adulthood compared to those who are unhappy as children. researchers say the study helps show the value of having a happy childhood. >> the egyptian military has deployed tanks outside the presidential palace in cairo following a night of violent clashes. fights broke out between supporters and opponents of president morsi. >> good morning, chris. >> obviously the protests aren't letting up. they're using stones, molotov cocktails, the tanks are in the streets. is there any sign that president morsi will give into protester demands rescind the decree that gives him almost absolute power? >> the muslim brotherhood as reached out and talked about a dialogue with the opposition and president morsi is to address the nation in a way to finally talk and explain his motives and what his intentions are. i think this was a colossal mista mistake in seizing this much power without explaining to his nation since the biggest crisis of the ouster of hosni mubarak two years ago. this could be a turning point. egypt will go to the polls next week to vote on this constitutional referendum, which really will define the new order in egypt with rippling repercussions across the region so this crisis can't be overestimated. it's really fundamental to what happens next in the so-called arab spring. >> in fact, three of morsi's advisers resigned yesterday. the u.s. has not criticized him public live since the crisis began. with everybody that's going on, the violence escalating the military, the country truly divided, how much pressure is there going to be on the administration to step in? is there a point at which you see the u.s. won't be able to stay quiet anymore? >> president morsi's top national security team has been in washington for the last three das and i've net with them twice. they're discussing the possibility of president morsi visiting the united states in february. there is a serious dialogue between egypt and the united states about a whole host of issues, including the gaza cease-fire and hamas in which egypt is playing an important role. and hillary clinton, as well as the white house, have called for the egyptians to engage in a broader dialogue because the stakes with egypt as one quarter of the arab population couldn't be greater. >> so you don't expect anything different than what we've heard from hillary clinton at this point? >> no, but if the tensions play out in a tougher way on the streets, i think the administration will be under pressure to do something or say something more publicly about what's happening. >> there are new developments in syria, robin opinion u. irobin. there are reports that syria is prepared to use chemical weapons. hillary clinton speak about it in brussels yesterday. >> we sent an unmistakable message we that an would cross a red line and those responsible would be held to account. we intend to make that view as clear as we possibly can be. >> how likely is is it that assad will give that order? >> the government was forced to close the airport because of fighting near, it took down the entire internet. his country is no longer just beleaguered, it is besieged. he can last a while longer but he is in trouble. if he uses chemical weapons, that is a point at which the international community will no longer sit at a distance in dealing with this regime. i think he may know that. weighing the alternatives, it may be an instrument he might think will keep him in power but it could provoke and accelerate his denies. >> would the russians abandon him? >> the russian position in supporting the assad regime and calling for some sort of negotiations with the administration that would keep assad around have been his mainstay and the russian position appears to be fluctuating a little, the fact that vladimir putin has been talking to the president of turkey, the prime minister of turkey, about how they can find some outcome and not see the endless bloodshed that has cost 40,000 lives so far. i think we are beginning to see a lot of forces come together. not enough but it may well be that kind of turning point we all look back to. >> robin wright, it's always good to have you on the program. thank you so much. >> thank you, chris. >> today's tweet of the day comes from reid wilson, our friend and editor in chief of the hot line. i find this fascinating. most looked up word in a single 24-hour period in 2012 permeram webster, malarkey, after biden used it at the debate. wasn't my daughter's black bean soup spectacular? [ man thinking ] oh, this gas. those antacids aren't working. oh no, not that, not here! [ male announcer ] antacids don't relieve gas. gas-x is designed to relieve gas. gas-x. the gas xperts. >>> pizza perfume, driving dogs and the grammys. if you've always loved that smell when you open a box of piping hot pizza, well now you can hear it. pizza hut is releasing a brand new fragrance named pizza hut perfume. i know what you're thinking, finally. it started as a joke and now 110 bottles have been produced for facebook fans. no word on if pizza hut will make more. >> buckle up humans. now there are dogs behind the wheel. a couple canines in new zealand got traend to drive. they're actually driving. they can change gears, they can brake, they're steering. the point is to show how smart rescue dogs can be. >> good news for this brother and sister who have found happy news. they were april boous and ababu the railroad tracks. one had to get a prosthetic legs. >> and the grammy nominations, topping the list with six nods each, kanye west, jay-z, frank ocean, mumford and sons and fun. >> the album of the year include the black keys, fun, mumford & sons frank ocean and jack white. >> okay. ruff ready for the new "star trek" movie? >> you think your world is safe. it is an illusion. >> "star trek "enter darkness ". that's just the trailer. twitter was going crazy over "star trek." >> twitter is going crazy over the resignation of congressman demint. >> republican congresswoman diane black will join me. president obama's approval rating jumps to any highs, his best in three years. where does congress rank? you might not be surprised on that one. and forbes unveils its most powerful list. who comes out on top. and that much freshness is gonna take some getting used to... [ sniffing ] yep. it's amazing what a single scoop of gain freshness can do. tomato, obviously. haha. there's more than that though, there's a kick to it. wahlalalalallala! smooth, but crisp. it's kind of like drinking a food that's a drink, or a drink that's a food, woooooh! [ male announcer ] taste it and describe the indescribable. could've had a v8. [ male announcer ] taste it and describe the indescribable. wooohooo....hahaahahaha! oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no you're not. i know. you know ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. >>> good morning. i'm thomas roberts. topping our agenda this hour, can you hear me now? no more reindeer games in washington. president obama and house speaker john boehner finally on speaking terms. but the question is are they speaking each other's language yet when it comes to the fiscal cliff? with just 26 days to go before the country officially goes over the edge, there are reports a growing course of republicans are pressuring house leaders to cave on tax hikes for the wealthy, this following president obama and speaker boehner's first phone
MSNBC
Dec 6, 2012 10:00am EST
tax increase, that's a big deal but it doesn't save us from the fiscal cliff. as susan was suggesting, there's a long time to go between now and the 31st. they have to wait until that long because neither side wants to appear to be giving in too early. that means they've given away more than they had to. you've got the president out there stirring the pot, trying to bring public opinion more to his side. the republicans are struggling to find some message to keep up with it. the danger is this whole thing boils over in animosity before the 31st and they go off the cliff because they have antagonized each other so much. >> and speaking of antagonistic situations, there's been a lot made of the dysfunction within the republican party but there's an article on the front page of the "new york times" that suggests that speaker boehner is actually in a stronger position in his caucus than when he was elected two years ago. how is he doing, do you think? >> well, i think he's in a stronger position because republicans feel like they're in a weaker position. i think a lot of republicans who m
CNBC
Dec 6, 2012 3:00pm EST
>>> leaving you with a winner. see you for "street signs" tomorrow. "closing bell" beginning right now. >>> hi, everybody. we enter the final stretch. welcome to "the closing bell." i'm maria bartiromo at the new york stock exchange. as we hurry toward the edges of the fiscal cliff, this market holding its breath. but holding up. >> yes, so far. technology one of the few bright spots with apple rebounding after that huge decline we saw yesterday. its worst day in four years. it's got everybody on wall street scratching their heads trying to figure out what the problem is with apple. at any rate, here's where we stands right now. sort of a meandering day for the markets. some economic data out this morning. the market responding to that. then a sideways move after that. the nasdaq benefitting from the rebound in technology yesterday. up 11.5 points on the thatnasda. the s&p is also trading higher. there it is. up 2.5 points on the s&p. >> meanwhile, bullish sentiment at an eight-month high right now. equity allocation is still at the lowest level of the year according to the american association of individual investors survey that was out this weekend. stock in a wait-and-see mode. totally understandable until these fiscal issues are resolved. >> but don't just sit on your hands. there is money to be made if you can find the opportunities. let's find out where they are in today's "closing bell" exchange. everybody is in the water here. scott is not there yet. jeff cox, the market is still waiting on the fiscal cliff. they're still sort of held accountable for that right now. yet, the investors' sentiment numbers are the highest in a while. what do you make of that? >> this isn't just the most hated stock market rally ever as some have suggested. this might be the most hated stock market ever. let's just talk about some quick numbers. market trading volume down 19% this year. we've seen $125 billion come out of equity based mutual funds. $300 billion go into bond funds. really, no appetite for getting into this market in terms of the volume. why? i think there's a general distrust of the markets. fiscal cliff and all of the other stuff. great story on the front page of wall street journal today talking about portfolio pumping. another example of investors thinking they're not getting a fair shake out of the stock market. >> larry, you call that complacency, don't you? >> that's right. i'm actually shocked that these investors appear to be asleep at the switch in light of the fiscal fiasco looming in less than a month. you would think investors saying their concerns would be running for the hills or at least buying portfolio protection to protect themselves against potential disaster. we see the vix very low. they're not taking the type of defensive, decisive action. if we get a downgrade and if this happens, it will be terrible for the market. that's what's potentially on the market, if we don't make a deal in washington. >> scott, let me ask you again how you want to allocate capital then in that environment. i know george young is with us again, joining the conversation. i want to ask you the same question. go ahead, scott. how are you investing right now? >> maria, i think the best way forward is the way it's worked since the bottom of the market in 2009. risk assets are where it's at. the fed is very supportive. the consumer is back and engaged. housing is getting better. the fiscal cliff is actually constructive from the standpoint it causes people to come together and compromise because going over the cliff while we may do it for a short time period is not beneficial to anybody. it hurts everybody. >> so risk assets being, what, technology? what does that mean, technology? >> not necessarily. we would stay with dividend payers. we would also dip our toe into europe into some very high-quality, multicountry stocks there. mostly on consumer discretionary stocks as well. >> george, we haven't forgotten you yet. scott, i have a question for you. just noticed today france and germany's stock markets hit 52-week highs. we're still wringing our hands over the debt crisis, and the equity markets are hitting new highs for the year. is it too late to get into those markets? >> i don't think so, bill, at all. all the european markets are up for the year except portugal, which is up slightly. even greece is up year to date. i don't think you're too late on that trade at all. in fact, i think, quite frankly, the structural changes that are happening in europe could produce growth for many years come. >> where are you putting money to work, george? >> the fiscal cliff is sort of the uncertainty du jour. people are always worried about next uncertainty. you need to blow past that and think about where the next good stocks going to be, how can i invest, how can i participate? taxes are likely to go up, but this is a lot of rattling. both sides of the aisle would come together. they'll figure out what's best. at the end of the day, they know they have to help the little guy, the consumer. pool corp. sells everything but the water. they're suppliers for the pool industry. we think they'll grow at 18%. they have very little debt. it's like an annuity. all the pools in this country are seven years old. we love that kind of stock. >> bill, i take issue with the idea this is just saber rattling. if dividends triples, that's going to have a meaningful change in the way people allocate capital going forward. we're already seeing it with special dividends this year. this is a significant change. >> this is not necessarily just, you know, the upset du jour. this can change the economic landscape in 2013 and beyond. >> that's not going to happen. >> what if we wake up on january 2nd, we go over the cliff -- >> why do you say it's not going to happen? >> human nature is to focus on all the worst possibilities. call me an optimist, but i think things are going to get better. the economy is strong. it's going to get stronger. >> what evidence do you have these guys are not just going to go over the fiscal cliff? we heard tim geithner on this program yesterday when steve asked him, look f you don't get what you want, do we go over the fiscal cliff? he said absolutely. >> he said he would do it! >> what happens when we wake up january nd, we go over the cliff, and the world doesn't end? >> that is so irresponsible. >> you have to be a long-term investor. long-term stocks have outperformed bonds. >> with all do respect, george, are you one of those come play september investors larry is referring to? >> i'd say we're opposite of that. we never take anything for granted, but we bet accordingac. bonds are trouble. a lot of people are going to lose a lot of money in bonds. you have to be prepared for that. interest rates are going to go up. dividends are going to continue to increase. the economy in this country is strong. it's going to get stronger. >> even at 44% dividend tax? >> it's not going to go that high. >> if we go over the fiscal cliff, it does go that high. it goes to 44%. >> no, no. don't think the worst. >> less than a month, it goes there. >> i want to think like an optimist, but i'm not going to put rose-colored glasses on. i see what's going on. >> there's no safe haven for capital or capitalists. you have to take some chances. >> my question here is what happens if january 2nd comes, we go over the fiscal cliff, and the world doesn't end and we kind of just get acclimated to this whole thing of just going forward with these higher tax rates? what do you do then if you get stuck in some of these positions? i'm looking at a couple other numbers. cash, $2.6 trillion. i saw before i came out here that corporate bond issuance went over. i think there are a lot of ramifications. i think just to dismiss this is really inviting trouble. >> think about all the corporate bond issuers out there. they're taking a window of opportunity because that window is going to close. they're running for the hills had to make sure they get all the bonds issued they can. >> if we go over the cliff, the cbo says we're going to be in severe recession. that's not business as usual. >> it's a contrarian fact that when people hate stocks this much, that's probably the time you want to own them. fiscal cliff or not. >> all right. i'm also looking at fundamental indicators too. if we go into recession, i think that's priced into this market. we'll be watching, gentlemen. thank you very much. we appreciate it. we have 50 minutes before the closing bell sounds for the day. a market that's up just about 11 points on the dow industrials. >>> very revealing interview. apple ceo tim cook talking about steve jobs' words of wisdom for running his company. listen to this. >> he told me on a couple of occasions before he passed away to never question what he would have done. never ask the question what steve would do to just do what's right. >> up next, we're going to find out if apple would be in better shape if mr. cook started asking, what would steve do? we'll get to that coming up. >>> then i'll talk exclusively with the ceo of fedex. fred smith is with me on how the shipping giant is bracing for a possible fall off the fiscal cliff. >>> it's all later on "the closing bell." stay tuned. >>> welcome back. take a look at apple here bouncing back today, almost up 1% after that big decline yesterday. that was the single biggest loss in four years. the stock is still down better than 20% from the highs, putting a lot of scrutiny on this company right now. >> in his first interview since taking over apple, ceo tim cook spoke exclusively with nbc's brian williams. here's a part of that interview. listen. >> how are you not steve jobs? >> in many way, one of the things he did for me that removed a gigantic burden that would have normally existed is he told me on a couple of occasions before he passed away to never question what he would have done. never ask the question what would steve do, just do what's right. >> but given the recent slide in the stock and missteps like google maps, should cook start asking is what would steve jobs have done? max wolf of green crest capital says tim cook could help himself by channelling more jobs. nicolas carlson makes the cay that in some ways tim cook is even better than steve jobs. i think we have a disagreement going here. max, you first. why can't we just allow apple to change and become tim cook's company? >> i think it has become tim's. that transition occurred prior to the passing away of steve jobs. i think it's healthy. i think he should stand on the shoulders. everybody in the tech world has something to learn from jobs. i think standing on the shoulders of steve jobs is great idea. i think wearing a dead man's pants to work is creepy and a terrible idea. he has to be different. he can't try to clone apple. after all, what makes apple different from all the people who want to be apple is it does its own thing. mr. cook has to follow in that great tradition. >> mnicolas, how does he do tha? what kind of business experience does tim cook bring that perhaps steve jobs didn't? >> first of all, tim cook has done a lot of things that make apple a more human company, which is important for the brand in the long run. there's been a lot of mess with foxconn in china. he's paid apple retail employees more money. that's good for apple and the economy. finally, he talked today about bringing over more manufacturing of macintosh computers in the united states. that's good for everybody. >> i think people will take issue saying tim cook is better than steve jobs, nick, don't you think? >> it's certainly hard to say anybody is better than steve jobs. that's not really an option, whether or not steve jobs continued to be the ceo of apple. i think tim cook has done a good job. for him to try to be steve jobs, to try to be a product visionary would be a big mistake. his real skill is optimizing supply chains and running apple's massive operations. he's done a good job of really focusing in on who can be the next steve jobs. that's johnny ive. he's the person who designed all the hardware at apple. now he's in charge of the way everything looks and feels. after steve jobs, there's a natural fight between who's going to become that next person. you have to give tim cook credit for going with johnny ive. >> at the end of the day, people want to know, is the innovation alive and well at apple? are they going to continue to come out with these products that the world wants to sfwhie max, what do you think? >> there's a possibility. they only do the big innovation. steve jobs had many and huge failures. he's not remembered for those. he's remembered for the successes. you don't get the successes unless you take the big chances. lately, we've seen them do a lot of what wall street wants vis-a-vis margins but a lot less of risk taking. they have to do that to keep being the apple that commands the premium on the price of all their goods that they've historically had and that ironically the markets rely on them to have in order to get themselves to price forecast for the share prices above $600. >> they're still trying big, new, exciting things. over the summer, we saw patent filings for things similar to google glass. they're working on these things. the difference between apple and google is they're not public about it. we don't know what they're working on other than these p patent filings. trust me, they're working on big, new, exciting things. even wearable computers. >> let's hope. we haven't seen them though. maybe. >> it just occurred to me, we talk about tim cook versus steve jobs and is the company different and how is it different and all that. is it possible, max, that shareholders think they are still investing in steve jobs' apple rather than tim cook's apple? >> absolutely. >> is that why we've seen this 23% decline in the stock recently as some of that is starting to dawn on them? >> absolutely. i'll do you one better. it's a great question. i think analysts still think they're forecasting and following steve jobs' growth. the bad news is that it's the wrong model. that era has ended. there's lots of exciting things to do. the story is not over. the future is potentially very bright. folks need to move away from maintaining the margin and benchmark everything against steve jobs. the margin is not defensible. >> it's snot just steve though. it's the talent steve attracted and whether or not thatt atalen is leaving or if it's still there. what are you shaking your head about? >> i think johnny ive is certainly as much of a talent magnet as steve jobs. this person has an aura about him. i think a lot of people at apple and surrounding apple are very exciting when tim cook did a good job of selecting johnny ive instead of scott forestall. you hear reports of people applauding that johnny is the man now. he's going to run the design over there. it's big news. >> all right. we'll leave it there. >> scott wasn't so popular either, which was part of the reason for the applause. >> guys, thanks. appreciate it. catch the full interview with apple ceo tim cook tonight 10:00 p.m. eastern on nbc's "rock center." >> looking forward to that. >>> as we head toward the close with about 40 minutes left on the trading session, losing altitude here. >> how about zynga? the company known for its farmville game, of course. the company is now betting the farm on a different kind of game. look at this. >> tell you what, fred. we'll play for a nickel if you want to bet. >> a bet? bet? bet, bet, bet, bet. >> oh, yeah. is it moving to gambling? just what this beaten-down stock needs. >>> after weeks on the run if authorities in belize, anti-virus software pioneer john mcafee has finally been caught, but you will not believe where he was found and how he was actually located. we have details on this bizarre story that gets more bizarre all the time. coming up. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] >>> welcome back. check out zynga. the shareholders getting good news today after a tough year. the stock rallying after the company filed for gaming license in nevada. julia boorstin with the story on this big bet. over to you. >> investors are clearly relieved to see zynga is trying to make money from online gambling. getting a game license in nevada is a key first step. but a much bigger hurdle is the fact that online gambling is illegal in the u.s. zynga could be sitting on a gold mine if even a few percent of its monthly poker players gamble. even if online gambling does become legal, all the big casino owners would pose some very steep competition. bill and maria. >> indeed. julia, thank you. despite today's gains, shares of zynga still plummeting this year, losing some 70%. does this news change the outlook? let's start talking numbers on zynga today. on the technical side, mark newton with grey wolf execution partners. on the fundamental side, paul hickey. does this make you want to buy the stock? >> not really. the biggest hang-up is the valuati valuation. for growth stocks in general, when a valuation isn't always a hang-up, but the problem with zynga is by most metrics, its growth is either slowing or declining. it doesn't seem to justify that high valuation. >> all right. mark, let's look at the chart. what does it tell you? what about this button-hook rise? >> technically, bill, the stock it starting to look better to me here, actually. if you look over the last nine months, the stock has dropped over 86% from the highs back in march. now this recent down trend has given way to more consolidation over the last few months. if anything, the recent trend is starting to resemble what a lot of technicians would call reverse head and shoulders pattern. a close here would represent new ten-week closing highs. my thinking is the stock can move higher, take out november highs and get up to 330. that would be almost a 29% rise from current levels. >> the stock does seem to be rounding out a bottom, but the big hang-up is the pop today on volume. we saw a similar move back in january when the stock jumped about 15% when the company said they were going to explore looking into online gambling. investors who bought in on that news, which is a similar type of news as today, have lost 75% while they waited. i'd like to see more confirmation in the charts and on the fundamental front before we got very attracted to zynga. >> well, look, the stock has come back from 16 down to $2. if you've ridden this stock down, it looks like you've been dealt a bad hand. just recently with the technical improvement improvements, my thinking is it looks like the board is filling up. you certainly don't want to fold here. my thinking is the stock can move higher. >> nothing to say to that, paul? >> yeah, i mean -- >> has he beaten you? do we give the victory to mark? >> if you've been holding it from ten to two, what's the point in selling it? >> i've said it before, i'll say it again, you can't break your arm falling out of a one-story window. >> and the one thing in zynga's favor, maybe, is the one that have been holding up the best as far as their growth is the online poker segment. that's seen the slowest deceleration in users. you know, that could be something for it. it's a stock that we'd stay away from still. >> all right. very good. thank you, both, for your thoughts today on zynga. see you later. maria. >> 30 minutes before the closing bell sounds for the day. the market is fractionally better on the session. the dow jones industrial average up 13 points here. up next, we're talking potential fallout from the the fiscal cliff with the head of economic bell weather fedex. fred smith will join me straight ahead. we'll get into that and a lot more. stay with us. >>> later, the ceo of the company that owns luxury brand gucci is warning sales could fall off if we don't get the fiscal cliff in order. hear from him later. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5412. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. >>> we are now just 25 days and counting away from the fiscal cliff, but are we any closer to a deal than we were yesterday? eamon javers is in washington making a career out of this story. he's got the latest on the negotiations. >> hi, bill. the battle for public perception here in the fiscal cliff fight continues today. the president visiting a middle class family in northern virginia who he said would be hurt by tax increases if those come to pass at the end of this year. the president saying that republicans simply need to come to terms and a deal with him. take a listen to what the president had to say out in the living room of this family in northern virginia. >> i'm not going to sign any package that somehow prevents the top rate from going up for folks at the top 2%. but i do remain optimistic that we can get something done that is good for families like this one and that is good for the american economy. >> so, bill, the president using the power of the bully pulpit there and image making. it's the power the president has to shift the debate here. republicans don't seem to have caved in just yet. we're going to have to see whether or not there's a deal. i think the most encouraging sign for those people who want to see a deal is that the president and the speaker of the house had a phone call yesterday, and the contents of that phone call haven't leaked out yet. that's a sign that there's a genuine negotiation going on and offers are not being rejected out of hand. last week we saw a lot of leaking after proposals. this week, not so much. maybe there's something behind the scenes. >> you have a quizzical look on your face. >> i was listening to the president. was he referring to the debt ceiling there, eamon, when he said, i'm not going to allow higher rates for the -- >> what the president is saying is what he's been saying all along. the deal is going to have to include higher rates. he will not sign anything that doesn't include higher rates on the wealthy. >> that's what i thought he said. >> he's using the backdrop of the middle class family to make his point. the republicans, in his view, are holding the middle class, these people, hostage in favor of the rich. that's a point the white house wants to hammer home. that's why you see the effort o find a visible backdrop to do that. >> and harry reid named a number today. 38.5%. >> they talk about the clinton tax rates and say how good the economy was under the clinton years, but it's not entirely clear that raising taxes is going to create a great economy this time around. >> thank you so much. we go from party line to the front lines on the impact of the fiscal cliff's mess. fedex ceo fred smith was among the ceos who met with the president yesterday. he's been outspoken on the issue of corporate taxes as well as jobs, making headlines saying it's a myth that raising tax rates will kill jobs. let's talk with fred smith right now in a cnbc exclusive about that and more. frank, good to have you on the program. welcome back. >> thank you very much, maria. always good to be here. >> good to see you again. let's start with the fiscal cliff issue. when it comes to higher taxes, you seem to disagree with house speaker boehner when he says raising taxes on the highest earners will hurt jobs. can you elaborate on that? >> i think what the speaker is saying quite correctly is you don't want to increase taxes on the job creators. the problem here is the 1986 act that equalized corporate and personal rates. so the most important thing is to have an internationally competitive corporate rate of 25% and a territorial tax system and then individuals who have been filing their businesses as s-corporations or pass-through corporations can incorporate and get that lower rate. they can negotiate on the individual rates. >> so you don't think the ordinary income, then, the 39.6% that we're talking about, in that case, would apply to small business. they would fall under the corporate tax rate. >> yes, exactly. people forget that until 1986, corporate and individual rates were separate. a big part of the '86 act was to equalize them. there's a big difference between 2012 and 1986. only 17% of our economy was related to trade in '86. last year in 2011 it was 32%. so we're now the highest corporate tax rate of any industrialized country in the world, and only chile has a worldwide corporate tax system like we do rather than a territorial system. >> so you're really talking about the corporate rate having the big influence here. you know, a lot of talk recently on wall street and from the investor community that the dividend tax, the capital gains tax is also going to be quite impactful in terms of money moving throughout the kpi. what's your take on that? >> well, i completely agree with it. i mean, if i were the czar and could wave a magic wand based on my experience, capital gains taxes would be, say, 25%. they would go to zero at the end of five years and apply to every investor, whether it was a tax-free pension funds and it would stop a lot of this speculation and churning of stock. and dividends, people forget, are already taxed at 35% at the corporate rate before your return of capital represented by dividend is taxed at 15%. and as of january the 1st, an additional 3.8% to fund the new affordable patient act or so-called obamacare. >> all right. so what's important to you in terms of the impact on business and the economy, then, are corporate rates and investment related rates. not necessarily ordinary income tax. you make very good points there. let's talk about job creation. you've said that jobs in the u.s. are produced by capital investments and equipment in software, not those marginal tax rates. is that the argument? is that why you feel that those are so important in terms of changing the tax code? >> sure. i gave a speech today at the economic club. i put up a chart that shows the relationship of private investment and equipment in software. it looks like railroad tracks. residential investment and government infrastructure, which is way down from historical levels, and business structures investment, that's important, but the locomotive that pulls our economy is investment in equipment and software. whether it's for an oil cater in the basis or a high-tech start-up buying servers and routers and things of that nature. it's our reduced level of capital investment that's produced our low gdp growth rates and our high unemployment. and high tax rates at the corporate level worldwide are directly related to high unemployment levels. you've got to stimulate investment in the united states and a lower corporate tax rate and a so-called territorial system where you don't tax profits made, say, from selling disposable diapers in china to chinese citizens. has to pay a tax to come back in the united states. >> let me get your take, fred. everything you say makes a lot of sense. yet, here we are on the edge of this fiscal cliff. we're not sure what will happen. many people predicting we'll go over the cliff. if we go over the cliff and the automatic spending cuts take effect and the tax increases take effect, what do you think happens to the economy? >> well, at the brt meeting that you mentioned, where the president was nice enough to come over, the question was asked, if we go over the fiscal cliff, how many businesses in this room will reduce capital investment? remember, i just said -- and it's very demonstrable that capital investment is what drives gdp growth rate and job creation. that tells a story right there. if we go across the fiscal cliff, we will have an economic contraction or slow down at best. >> how are things looking right now ahead of the holidays? i'm sure your company is real busy, fedexing gifts. what are your expectations for this holiday season? >> well, you know, the 300,000 wonderful teammates of fedex are working very hard. we publicly forecast a couple weeks ago that on the 10th we would move 19 million shipments through our network. that's up about 11% year over year. e-commerce is causing a significant amount of growth. retail sales are going to be up some place in the 3.5% and 4%. we think absent going over the cliff and absent tax reform, u.s. gdp around 2% next year. worldwide, about 2.5%. >> real quick, we have to ask you your plans. you had said at some point you would leave the ceo role as soon as 2013. is that still in the cards? what's the succession plan? >> well, we have a strong team at fedex that manages the company. the strategic management committee of nine people. lots of people that can do my job without missing a beat. i don't have any plans to go any place in 2013. we're having a good time. if i were incapacitated, we'd probably upgrade the ceo with a strong executives that we have at fedex. >> so you're planning to stay right there? >> at least for a while. >> good for you. fred, good to talk with you. we appreciate your time. >> thank you for having me. >> shareholders will be pleased with that answer. see you soon, fred. >> thank you. >> the market is rallying while you guys are talking. >> 32 points higher. >> interestingly, the day before we get the jobs number. also, one of wall street's top strategists will be joining us with his 2013 market outlook. he's bullish on three specific sectors. we'll name name when is we come back. >> how about the fact that a third of americans believe now is a good time to invest. do people with money in the market agree with that sentiment? the surprising results of all of america economic survey coming up. ♪ mom? dad? guys? [ engine turns over ] [ engine revs ] ♪ he'll be fine. [ male announcer ] more people are leaving bmw, mercedes and lexus for audi than ever before. take advantage of exceptional values during the season of audi event. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ together for your future. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use. it's the ultimate combination of speed, small size, and low-cost printing. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. >>> so 2013, just a few weeks away. the markets are in the green for this year so far. it's been a bumpy ride lately, as we all know, amid the fiscal cliff uncertainty. so how should you position yourself and your portfolio for the new year? >> that's the question. let's bring in scott rand with a first-on look at their 2013 outlook. scott, good to see you. thanks for joining us. >> thanks, guys. >> so what do you think will be the growing areas of the economy and the stock market? let's first look at the stock market. what do you think will be the 2013 winners? >> well, maria, i tell you right now we're focussed on three sectors. consumer discretionary, materials and technology. industrials are starting to look a little better, but we're even weight those right now. this could change during the year, but coming into 2013, i think those three look pretty good. >> why those? what's that tell us about the nature of the recovery in this economy right now? >> well, you know, bill what we're trying to do, we don't want our clients overly defensive here. we've been trying to get, you know, some cash put to work on these pullbacks. we don't want them overweight health care and staples and utilities and things like that. our belief is that we're going to see a better economy in 2013. fred smith just said they're expecting 2% gdp. we're expecting a little bit better, 2.5%. i think the global gdp is going to be a little better than it was in 2013. i think we're going to see better consumer confidence, better business confidence, better investor confidence. so if you think that's the case, you need to be in those sectors that are going to benefit from a better economic environment. those are three sectors right there that are going to. >> does that hinge on whether or not we go over the fiscal cliff? in other words, if we go over the cliff and begin the year in a rough spot because of these spending programs that were cut and the higher taxes, do we have to first come out of that or not? >> well, you know, maria, my belief is we're not going to go over the cliff. i think that's likely to happen there is we see a little bit of taxes increased on a narrow number of people, a little bit of spending cut on a narrow number of industries. we move on from there. now, if we do roll over the cliff, of course the economy is not going to be knocked off the rail right away. it's going to take a little bit of time. but i think the market would have a negative reaction. you would have every ceo like fred smith, like the people that were in the room with him earlier today, coming out and saying, hey, we're slashing employees. we're not going to do any capital investment. i think the politicians would quickly panic in that situation. at the very least, band-aid it, kick it down the road, everything retroactive back to january 1st. >> the fed has been taken off the front page lately because we're all wringing our hands over the fiscal cliff. there is chatter out there we're going to hear from the fed next week, maybe yet another round of fiscal stimulus and another qe-4. whatever it's going to be, the fed this year providing lots of liquidity. the market went higher in many cases, even though the fundamentals didn't justify that. are you hanging your hat on more fed action in 2013 for some of these growth opportunities? >> i think not only is the fed going to be in buying the mortgage-backed securities, but after the one program fades here at the end of the year, i think they could very well just be back in buying straight treasuries as well. i think that our central bank and every major central bank around the world is going to be providing a ton of liquidity in 2013. i don't think they're going to back off at all. i think employment -- unemployment is going to work its way a little lower next year. maybe we're at 7.5 at the end of the year. these central bankers, we're going to have the wind at our back from the central banks for a long time. a ways through 2013. >> so it's more don't fight the fed. got to be in equities then if that's the case. >> i think that's part of it, maria. you have to remember, corporations are making money. besides the fed, we have low inflation. we have some things that are in our favor. i think that's going to continue. now, this growth that's going to be modest growth, modest inflation. i think stocks can do okay in that. they're not going to surge in that. certainly, we've had a good year so far. if we finish anywhere near current levels, we'll have had a great year. i think we're going to have a pretty good next year. i think we're going to end at 15.25, 15.75. that could be a little conservative. if china bounces back quicker than we anticipate, or if europe flattens out. we're optimistic next year. we want to make sure our clients are in this market. >> scott, good to have you on the program. >> all right. thanks, guys. >> you know, he's not alone. lots and lots of analysts are coming out with their forecasts for next year. pretty bullish. >> even morgan stanley, right? >> yeah, for once. all right. heading toward the close here with about 12 minutes left. the dow hanging on to a gain of about 30 points. >> the situation with anti-virus software pioneer john mcafee is going from strange to surreal. he's now in custody. now reportedly has had two heart attacks. we're going to tell you the latest on this bizarre and evolving story. >>> also, the ceo of accounting giant recently met with president obama. he say miss other ceos in that meeting agreed the tax rates for the wealthy have to rise as part of any fiscal cliff deal. he joins us exclusively later on "the closing bell." stay tuned. [ male announcer ] this december, remember -- ♪ you can stay in and like something... ♪ [ car alarm deactivates ] ♪ ...or you can get out there with your family and actually like something. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... i'm with scottrade. >>> one of the most bizarre man hunts in recent memory is coming to an end in central america, we think. wealth editor robert frank has the latest details on the arrest of john mcafee. >> yes, bill, it's coming to an ends. we just learned john mcafee has been taken to the hospital in guatemala. this follows news the former software tycoon was about to be deported to belize to face questions over a murder. let's bring everyone up to speed. mcafee has been on the lam for three weeks after the murder of his american neighbor in belize. belize police are seeking him for questioning. this week he fled to guatemala in hopes of finding safety and political asylum. his request for asylum was denied. police announcie ining today th going to fly him back to belize. he's about to be taken to the hospital amid reports he had two mild heart attacks. least been blogging all day today from his detention cell. his lawyer says the heart attacks have not prevented him from blogging, but we don't know why he's in the hospital. what happens now is anyone's guess. this strange movie is far from over. back to you. >> it's going to make a great movie some day. it is unbelievable. >> so bizarre. you know, he's been on the run. now, you know, he's in custody but with two heart attacks. >> i know he's been at odds with the belize police. if you're innocent, why do you leave the country then? >> that's one of the huge questions here, bill. >> he said they're out to kill him. >> he said they want to kill him. it's retribution for his failure to pay bribes to the belize police. they've take an lot of his workers into custody. some of those workers have the not been seen since then. there are real signs that he could be in danger, but he offered to answer questions by telephone from kwaguatemala to belize police. they say they want him in person. the central question is if he didn't do it, just go in and tell them, give them your alibi and tell them what you know. he hasn't done that yet. >> especially since he has the world's attention right now. >> that's for sure. this dispute with his next door neighbor occurred because mcafee's dogs, he left them out unleashed at all times, and the neighbor was upset about that. on one particular day, september 9th, i think it was, his dogs, many of them were found dog. they had been poisoned. then two days later, the next door neighbor was found murdered. >> that's right. mcafee said, look, you know, it's clear that he did have disagreements with his neighbor. he said, look, there were six people with mcafee sleeping at his compound the night of the murder. he says, look, i have six witnesses who were with me in my compounds while i was sleeping that night. he has an alibi. meanwhile, mcafee offered a $25,000 reward for finding the real killer here. meantime, there's been a recent picture posted on twitter. it's a little disturbing. it shows mcafee lying in a hospital bed not responding to nurses. so this could get very serious in the coming hours. >> all right. we'll find out. thanks, robert. crazy. heading toward the close. we have the closing countdown with the dow up almost 40 points now. >> we'll check in with td bank. they're making another big acquisition. the ceo here exclusively to talk about what it means for the bank, whether there's more wheeling and dealing to come. you're watching "the closing bell" on cnbc. first in business worldwide. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. >>> about 90 seconds left. going off the highs of the session. we pointed this out earlier. the french and german stock markets today closed at 52-week highs. look at that. highest they've been all year. our market, not the same. the dow is below the highs that were set back in september. i want to ask michael shay what's holding us back, fiscal cliff or what? >> at this point, we're finally all fiscal cliff. the last two or three weeks has been fiscal cliff. >> would we be higher if we zrpt that distraction? >> i think absolutely. the equity markets would be. i think the bonds market is still pricing in a lot of stress over in europe. that's why you're getting a little bit of this divergence. we talked about this earlier. if you look where sectors are trading right now, after we got the bounce on the 19th, there are several sectors doing far better than where they were on election. >> that's true. you know what? we've been so focused on the fiscal cliff, we haven't thought about the jobs number coming out tomorrow. what do you expect? >> i expect it to be nothing that's going to
FOX Business
Nov 29, 2012 5:00pm EST
mortgage interest deduction could be on the chopping block as part of a fiscal cliff deal. will this kill any incentive to buy a home and the housing market right along with it? we'll take a look. >>> a new report that exxonmobil has a oil shortage going on. its oil and gas output is at a 3-year low. we'll tell you why and whether you need to worry about more industry giants suffering the same fate. >>> put your money where your mouth is. a rapper offers a mill dollar reward for the lost laptop. when it is found he refuses to pay up. the financial fight goes to court. you won't believe who the jury has singing the blues. even when they say it's not it is always about money liz: all right. first let's take a look at the day's market headlines, will they or won't they? this is worse than an episode of "friends" i have to tell you. mixed signals from congressional leaders sent stocks whipsawing but all the major indices rose at the end of the day. the dow closed 36 points. it is something, come on. >>> research in motion hearing words they're not used to, buy. goldman sachs upgraded com
CNBC
Dec 3, 2012 4:00pm EST
in the fourth quarter. presumably to get ahead of higher dividend taxes if the fiscal cliff deal is not out. right now, dividend taxes are at 15%. if we go over the fiscal cliff, they could go up to 44%. today several more companies jumped into the pool, including satellite tv provider dish. what's interesting with many like dish, for example, even if you don't own the stock, you have until december 14th to buy it and still git that special dividend paid out two weeks later. should you be jumping in? should you buy a stock just to capture that dividend? cnbc contributor ron says it's tough to pull off. ron s this a smart strategy for investors to pursue? what's your take? >> i expect large i traders can do these things more efficiently than individuals. back in the 1980s japanese investors got special treatment for dividend payments. it was well better than what they got for capital gains. they used to engage in strategy called dividend rolling or dividend capture strategies where they would buy the stock one day before it went ex dividend, captured it, sold the stock later. i would
CBS
Dec 5, 2012 5:00am PST
suspect is. >> we're one day closer to the "fiscal cliff" and both sides are still far apart on a deal. >> i call it a pitchfork battle. it's very contentious. >> and a dogfight over proposed dog park in oakland. >> i can't believe that people would prioritize the needs of their pets over the needs of oakland's children and families. >> from across the bay to around the world, the stories that matter on "eyewitness news this morning." >> he just knows how to play. >>> good morning, it's wednesday, december 5. i'm michelle griego. >> hi, everyone. i'm frank mallicoat. nearly 5:30 now on your wednesday. >>> drivers have got a wet commute this morning. let's get a quick look at the weather with lawrence. >> yeah, guys. getting stormy outside right now. in fact, a good batch of moisture just about to push onshore. our high-def doppler radar is showing you that rainfall. it will be picking up. some places already seeing moderate to heavy rainfall. but look at the yellow and orange. that batch is just about to make its way in along the peninsula. we'll talk about that plus the prospects for dry we
CNBC
Nov 29, 2012 2:00pm EST
would be willing to make to reach a fiscal cliff deal. >>> plus, we will hear exclusively from the ceo of oil giant chevron. he's warning that a fall off the cliff would force his company to drastically change its investment strategy. >>> and is it possible the dollar bill, the paper dollar bill, could actually be replaced by a dollar coin? all in the name of fixing the debt? we have both sides of that coming up. >>> maria and i both look forward to seeing you at the top of the hour from here at the new york stock exchange for the last hour of the trading day. see you then. >> thank you very much, bill. >>> it is "sunshine stock" time. shares of ebay hitting an eight-year high today. that stock has not traded at these levels since january 2005. ebay has gained more than 6.5% just over the past week alone. >>> do you know someone who needs some sunshine? how about social stocks? they're not it because they've been in a slump. does wall street continue to be anti-social? julia boorstin, what do you think? are they over? >> well, brian, i'll put it this way. these daily deals companies ar
FOX Business
Nov 29, 2012 1:00pm EST
>> i am melissa francis. >> i am lori rothman. so much for progress on the fiscal cliff talks. at least for today. progress getting a fever pitch as john boehner says white house needs to get serious. senate majority leader harry reid says he is waiting for a serious offer from republicans. so there you can see the stock market slightly higher, reacting to every last word coming out of capitol hill. now the dow was higher, but off of the best levels of the session as we make progress. melissa arizona is the latest state to refuse the exchange. we will bring on judge andrew napolitano to talk about this one. lori: "time" magazine announcing it candidate for person of the year. wait until you hear who the candidates are. we will handicap the list with lou dobbs. melissa stocks as we do every 15 minutes. nicole petallides standing by. stocks are losing sseam as house speaker john boehner took the podium although they have recovered a bit. nicole: is difficult to monitor which way and guess which way the market will go as each headline process crosses, we'reg the market being started around the unchanged line. and then you have people saying how the white house has had a change of tune. this is the type of environment we are in. as far as the big pitcher goes, the market is showing some resiliency considering we have had weeks after weeks of worries on the fiscal cliff, and yet we're still pulling off some up arrows. take a look at cold and macy's. both have come under some pressure. noting hurricane sandy, macy's same-store sales fell, also mentioned sandy as well. kohl's down 10%. lori: thank you, nicole. an upward revision appeared tonight, but our next guest expects growth to decline for the fourth quarter. deutsche bank security nominee with his outlook for next year, and if we get to it, some expectations on continued stimulus which we heard this week as well. this was the second print out of three on third-quarter gross domestic product. looks like a nice upward provision. about 2%, but if you look under the hood there are some serious problems and i will let you start there. >> a little bit of fine print. consumer spending was revised lower, business investment in equipment and software. for the upward revision was due to a lot more inventory being accumulated last quarter, partly due to a faster pace of economic activity. not the strengthening in the number we would like to see. lori: does it suggest go to the softening consumer picture, people are not buying stuff simply put question marks >> there is a wait-and-see attitude. not only for the capital investment, but also in terms of the pace in hiring. i think a lot of folks were waiting to see what happened to the election and what happened with the eventual revolution of the fiscal cliff would be. lori: there is no resolution. it comes to installing pace is any at all at least today, does a lot of economists that fear this concern and all the dialogue about the fiscal cliff is already starting to hurt the economy, do you agree? >> you see that with the investment spending, and it can only get worse as we get closer to the end of the year as everybody holds their breath in the economy collectively, we have big problems. lori: one thing was the incredible amount of government spending especially on defense. one of the biggest issues is concerning. >> the issue really is what happened in the current quarter and going into the beginning of next year. other types of discretionary spending is as well. the total is $600 billion, the economy simply cannot withstand that sort of shock. we saw a week underlining detail report. know the economy will be soft in the current quarter due in part to hurricane sandy but also the slower trends in the various components. lori: 1.7 is the consensus estimate of expansion, what are you thinking? >> we're forecasting 1.3%. in the ballpark of 1.7 before hurricane made landfall. more of a ceiling than a floor at this point. lori: anything good to look forward to? >> things don't look all that bad next year. one of the key reasons when next you will be a little bit different is the housing market is finally recovering. sales volumes are picking up, home prices are increasing. tremendous impact. lori: great. always great talking to you. even though most of it was disappointing. melissa: still no progress on the fiscal cliff talks and capitol hill. senator reid and speaker boehner are waiting for serious offers and specific plans from the other side. peter barnes with the latest. >> despite the dueling press conferences, one democratic leader, chuck reed, excuse me, chhck schumer of new york says there is progress being made behind the scenes for a deal to avoid the fiscal cliff. publicly the two sides still sounded miles apart after talking to president obama last night for 15 minutes and meeting with secretary geithner for more than half an hour. john boehner said the two sides have made no progress on a deal. he wants to see more spending cuts from the democrats, but the democrats punch back and said it is republicans who aren't making any serious offer on more tax revenues. >> so right now all eyes on the white house. the country does not need a victory lap, it needs leadership. tell the american people with spending cuts they are willing to make. >> if it happened, it will be under the leadership of the house. for a balanced agreement, we need republicans to come forward with something. >> speaker john boehner said this is a moment for adult leadership, a stab at the president there. melissa: my goodness. i understand mitt romney is coming to the white house for that lunch. i don't know, what is everybody expect to come from that? >> the president said the president wanted to talk to governor romney about ideas to make it more efficient. praising the management of the 2002 olympics, said he did a good job there. governor romney is one that raised the ideas happen deductions for tax for people to come up with as far as tax reform, come up with more tax revenue. melissa: thank you so much for your input, peter barnes. lori: what is on the menu? got to give a shout out. there is another battle brewing over the fiscal cliff, instead congress and the white house, this one happening on twitter. melissa: dennis kneale is covering the story with the latest. i love this one. >> the obama administration renowned for the use of social networks but this time maybe it outdid itself. the president urging americans to tweet their support for using the hash tag mo farah, as in my $2000, raised taxes on somebody else. now my2k has become a way to trash obama and cheering at the democrats. they been acquired sponsorship rights for my2k, they often see paid messages opposing the obama tax hikes. they run the gamut. some talk about the sudden switch to now playing up keeping tax cuts for everyone else. others make fun of my2k origins. a few samples. obama irony, same people who claimed bush tax cuts are only for the rich now argue to keep them because they help the poor. and there is this one. my2k should really be somebody else's two k. they can government not to take their money and say take it from someone else. and then there is this one, y2k was caught by programmers failing to limit code 24 places. speed was caused by americans failing to limit obama to four years. back to you. melissa: thank you so much, thanks they want to tweet hash tag bad ideas. thank you, dennis. lori: what is going on? melissa: you haven't been shopping. lori: luxury jeweler not looking very pretty today. the trade at the nyse coming ahead. melissa: is andrew mason the right person to run it groupon? meeting on the troubled company's future. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. now is a good time to think about your options. are you looking for a plan that really meets your needs and your budget? as you probably know, medicare only covers about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they cover some of what medicare doesn't pay. and could save you in out-o-of-pocket medical cost. call today to request a free decision guide to help you better understand medicare and which aarp medicare supplement plan works best for you. with this type of plan, you'll be able to visit andoctor or hospital that accepts medicare patients... plus, there e no networks, and you'll never need a referral to see a specialist. there's a range of plans to choose from, too. and they all travel with you. anywhere in the country. join the millions who have already enrolled in the only medicare supplement plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthcare insurance company, ich has over 30 yes of experience behind it. call today. remember, all medicare supplement plans help cover some of what medicare doesn't pay -- expenses that could really add up. these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and you never need referrals. if you're thinking about your options, call today. when you call, request your free decision guide. and find the aarp medicare supplement plan that may be right for you. at legalzoom, we've created a better place handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. melissa: as we do every 15 minutes, let's check the market, nicole petallides on the floor of the new york stock exchange. you're looking at a couple of big movers down there. nicole: some good news, some not such good news. starting out with research in motion. one of the big ones. goldman sachs coming up with a buy rating, a new price target of $16 up from $9. in their view, they think the straight overall, all the analyst put together are too low, not given enough credit to the library 10 coming out on january 30. the talk note risk reward that can be quite good, result we are seeing so far. does not really capture the potential, that is wh when theyt a buy rating and that is why the stock is up 6%. on the other hand they're watching tiffany's, the luxury retailer coming to the downside because same-store sales are losing, asia has been a loser for them, even the more reasonable area, the silver jewelry has dropped off. it is not working right now. melissa: nicole, thanks so much. new york attorney general taking action against 12 gas station operators in new york city, long island and westchester putting price gouge in the wake of hurricane sandy. inhibiting excessive increasing the cost of a central good light gas. one case ther your attorney genl is for waiting over an hour three pumps away when he was being charged $50 for a gallon of gas, $10 per gallon in contrast. stations charging $3.95. also get gas tanks and cannons being sold on craigslist that had like a gallon of gas people wanted $100, people were calling and responding. melissa: people were hoarding it for their generators. melissa: said if we just let the market fluctuate, we would have had shortage. lori: in the meantime make some money with charles payne joining us with what you need to know to make some money and be up to speed. charles: the judges for letting the market do its thing. jessica simpson pregnant again. now lindsay lohan, she is arrested again. i just left the club before she began swinging. i hear that she might come you can argue she is the most effective celebrity spokesperson of all time. move over william shatner. when she was three years old she did commercials for pizza hut, gap and cello. -- jell-o. since then, look at this precocious little girl, megastar and i think she is right instead of buyyng the products, i will buy the stock. it is a stretch. yum up 835% since nixon to seven, gap stores, and craft up 450%. you can argue she can go out and say i am marketable, look at what happens long-term when companies use me so maybe her career is not over. lori: you should be her agent. she needs a better one. charles: her last one was proactive. this trivia question, where was she born? lori: in long island? i just absorb this information. charles: she was born in the bronx. 1986. i was born in manhattan. lori: learn something new about you everyday. melissa: we have to get together more often. we will work on yours next. charles payne, thank you so much. lori: learn more about knight capital. charlie gasparino has the latest on a story he wrote. melissa: the city of detroit careening toward bankruptcy, but that one way to save the city actually be dissolving it? take a look at how the dollar is faring heading out to break against other major currencies around the world. we will be right back. and waiting in line. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com, you can print real u.s. postage for all your letters and packages. it gives you the exact amount of postage you need the instant you need it. can you print only stamps? no. first class. priority mail. certied. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. >> right now is 23 minutes past the hour. this is your fox news minute. it has been a week and george h. w. bush still in methodist hospital with a lingering cough. the condition is not life-threatening and doctors initially concerned the illness could turn to pneumonia, but it hasn't. u.s. embassy in cairo clothes in public services early today because of the protest going on in the city. urging u.s. citizens to avoid the area. the egyptian community votes on a new constitution today despite the power grab by president mohamed morsi. parliament members voted earlier to keep sharia law as the main sport of legislation there. how about the lucky folks who struck it really big? only two tickets matched the powerball tickets last night. the prize is $579.9 million with $379.8 million cash option which to me is like 380 million anyway. melissa: i had one number. lori: i am rich in great colleagues. employees of knight capital say an eerie silence have descended over the company with competing bid for the trading outfit. charlie gasparino with latest on the future of knight capital. >> if i won, guess it would not be making this call to break the news. no, i did not win. i do not gamble. here's the thing, what is kind of interesting is we have not yet gotten sort of a pressure release by virtue of what is offered. i have a lot of calls, it is owned by viola, former nymex ceo. that is kind of weird. another preservation's last night, another discussed terms, but you generally get a press release or official bid. we don't have that yet, so we are waiting on that. the other thing we should point out is tha getco's offer, how wl they get at $3.50? you have to take their word at it, they have to squeeze some savings to get that. i capital has $1.2 billion in costs, they can basically expense it, squeeze that down pretty significant and i think that is what getco is saying to shareholders, we can make it $3.50. worth at least $3.50. that said, i can tell you by speaking to people close to the board that the board is favoring an all cash bid. waiting to see what it is. if he comes close to $3.50, say $3.20, i think they hit the bid. in all cash bid at $3.20, $3.25. and the other thing, the future of tom joyce. under the getco bid, he is essentially out. nonexecutive chairman, which means you are done. even under the virtue bid, can't imagine he will be there very long. i think he stays through transition and leaves. if he gets this deal, he can revive his reputation after the trading glitch and all the stuff that nearly blew up the firm. he knows the market, he can be replacement of one of the ceo ceos. if they decide to do something else, he is a guy that could step into one of those jobs because he knows exchanges. that is what we know right now. we're clearly waiting, it is an eerie silence. lori: oth suitors and in vowels. >> that is pretty wild. my name ends in a vowel. see you guys. melissa: turmoil breaking a three-day losing streak, will it hold onto the gains? talking guy fiscal cliff deal. lori: thank you for reminding me i was saying goodbye to charlie. groupon prices down 80% since going public. the very latest as the board of groupon meet. and look at the winners and losers on the s&p 500. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... [ male announcer ] at humana, we undrstand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the difference that qualy time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other health professionals who helped us achieve the highest average star rating among national medicare companies... nd become the first and only national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in the quality of care and service we're able to provide... which means better health outcomes... and more quality time to share with the ones who matter most. i love you, grandma! [ male announcer ] humana. ♪ ♪ [ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. ce to the winter event and get t mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer lease a 2013 glk350 for $399 a month at your local mercedes-benz dealer. at your local i have obligations. cute tobligations, but obligatio.ing. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommded gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. lori: dow is up 44. they are back above significant moving averages for all you technical chart watchers out there. nicole, the markets hitch on every word out of capitol hill and fiscal cliff but on earnings still. >> that's right. there is still so much going on here. i saw a headline going by that the markets remain tethered to the fiscal cliff talks. certainly we're seeing market reaction to each headline out of washington but also these earnings. let's talk about some of these names here, looking particularly at kroger the large supermarket company. revenues beat the street. i just did a long term search, it is a multiyear high actually for kroger which is up more than 4% so to highest levels we've seen since 2009. they also raised their full-year earnings forecast. they have seen consumers boosting their purchases and that is because food prices have actually come down some. that is some good news there for kroger. as far as la-z-boy, their shares have been under some pressure. their results for the third quarter missed analysts expectations. they have been working on marketing campaigns. they do think that is delivering strong results. think reinstated quarterly dividend. that is good news since they haven't done so since 2008. they're underpressure after missing the numbers, down 12%. back to you. melissa: nicole, thanks so much. oil on track to snap a three session losing streak even though speaker boehner says there hasn't been a any real progress on fiscal cliff talks. phil flynn from price futures group, what is driving oil today? >> no doubt we're not tethered to the fiscal cliff. we're swinging on the rope back and forth. this risk on, risk off, fiscal cliff done, not done, has definitely tighten the market. there is more hine moves in oil today. we had some really good economic data but also here in the united states. that was very strong. we're look at tension in the middle east. we have the ongoing story. the concerns about iran and egypt still running very, very hot makes it more dangerous to be short. now the other good news that we did get, if you remember yesterday we saw a big pop up in heating oil and gasoline because of the power outage at the hess refinery in port reading in new jersey. we did get good news on that front. that is supposed to be fixed. production will start up right away. should be normal. that puts downward pressure on heating oil and gas. good news in the wild ride on the fiscal cliff. melissa: phil, real quick what is going on with nat-gas? we're freezing here in the northeast. >> it is balmy outside what are you talking about? it is so warm. i'll tell you what, this goes to show you the incredible production that is happening. we see rig counts went up last week but they're down 45% on the year. we're so much more efficient producing gas. melissa: sure. >> it is building supplies and temperatures not as cold as advertised. melissa: phil, thanks so much. >> thank you. lori: phil sounds like he was screaming at someone. melissa: a little under the weather. we wish him well. lori: of course. groupon, was it just a fad? the future of groupon ceo andrew mason may be in jeopardy as the social website's board decides on the fate and strategy for the company. shibani joshi joins us with the latest on one struggling company, shibani. >> i have to tell you only one number investors care about when it comes to keeping management in place and the overall gross prospects of the company and that is the company's stock price. if you look at groupon's stock price since the ipo pretty damting evidence against andrew mason. it is down 75% since it debuted in 2011. there were rumors, ouster rumors started circulating in the market and the stock price went up 12%, pretty much indicated shareholders would be a-okay getting rid of the founder and ceo of groupon, andrew mason. a lot of reasons not just the stock price to get him removed from the top office. the company failed to show blockbuster growth. it posted a third quarter loss of 3 million bucks. it is having a hard time growing its business and keeping top management. with that said, there are a number of reasons he could keep his job. first he built one of the fastest growing companies in business period. he executed ipo at that time was the largest since google. he has a founders passion that is not easy to replace especially in the technology business and he has been creatively expanding the business. you know that founder's passion i think is one. key reasons they could keep him. overall, what the board will be looking at, a number of routine business matters. it is a routine board meeting that is being held today. they will talk about normal stuff and also possibly replacing him at the top. it is up to them to decide ultimately what happens to him going forward. lori: shibani, many thanks. it is being hailed as the greatest breakthrough in air travel since the invention of jet flying at 4,000 miles per hour. melissa: and this guy, south korean singer, i like him. should he be person of the year? i think so. "time" magazine candidates and lou dobbs. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for al things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, pluget up to $600 when you open an account. >> i'm robert gray with your fox business brief. stocks are shrugging off earlier losses and well off session lows but still sensitive to comments out of wash on the fiscal cliff. the market slid after house speaker john boehner said there was little progress being made in the budget negotiation. >>> the u.s. economy grew at a faster pace than initially thought. third quarter, grow mow destick product or gdp expanded at 2.7%, slightly below expectations but topped the initial estimate. >> entrepreneurship in the u.s. jumped 60% in 2011 from the prior year. more than 7 million u.s. adults running their own business or starting their own shops. the study found the first up stick in entrepreneural activity since 2008. that is the latest from fox business network, giving you the power to prosper lori: breaking news from d.c. capitol visitors center is being evacuated. we're heading straight back to peter barnes to the latest what is going on. peter? >> lori, we have fire trucks on capitol hill after there was an audible alarm, one or two of them in the capitol visitors center, a popular tourist destination here. the structure has been evacuated. streets around the capitol had have been closed off. according to our colleague at fox news there are nine fire trucks on sight right now, multiple pumpers, hooks and ladders. a senior security official tells chad they still don't know what prompted this alarm. if we find out more we'll get it right to you, lori. lori: such a busy tourist time of year. peter, we'll check back in. melissa: who is 2012's person of the year? "time" magazine out with the list of candidates and lou dobbs is here with his take. what do you think? >> so nice of you to invite me to join you for a discussion of this. as i look at the time list, the possibilities here, i mean i'm really struck by bashar assad, roger goodell. kim jong-il. these are names automatically you assume would go together. i can't find a person in here who, mario draghi, the head of the european central bank is sort of my personal favorite because he is -- probably with no offense to him, the driest person here, the least well-known and perhaps as has most influence on events on the year arguably --. lori: may not be a longshot though. remember last year, "time" magazine showed the pru tester. >> people were talking about that in the summer. melissa: without question. >> it was such a brilliant choice. melissa: i think it is hysterical how, well, i don't know i guess i'm so cynical but they pick this group, right? >> big smile on your face. melissa: but i laugh when i'm cynical. this isn't funny to me. this is how i enjoy myself. they put the list out there and they say we'll let of course your vote counts. by the way vote as many times as you want. at end of the day we'll pick who the winner is although you have a big influence on it so come to our website and vote on it. we're partially to blame because here we are talking about it. a lot of people they put up to cause controversy and get people talking and go to the site and vote for someone else. i would like to be in the room looking for the votes to see how much they put in that. i would vote for lou dobbs. >> that is so thoughtful. melissa: what do you think? lori: oh, i second that thought, hands down. lou done. -- dobbs. >> was this a set up to get to that? i have to tell you what a wonderful choice. melissa: yeah. lori: you know something? you transcend, we they had showed the celebrities, i'm not as cynical. i'm trying to make --. melissa: she is not as cynical. that's why we're a good pair. lori: you summed it up right there. you want to find people who transcend popular culture, celebrities and world leaders. it is a tough thing to do. who is really making their mark on the tone and sentiment of the world today. you saw psy and everybody is laughing about his gang nam style dance. hey, sexy lady song. melissa: can you do the dance for us. lori: i won't on camera. i'm doing it during the commercial break that is little embarrassing. it brings people together and relate to it and laugh about it and be cynical and generous or be entire attend. >> i like the concept of generosity and i appreciate the generosity of both of you, thank you, lori, thank you, melissa, for putting my name in nomination complete with cover. i don't think we have to go beyond that. melissa: yes. i think besides lou i would also, who is obvious choice, could be somebody who made us laugh. it has been a long, tough, serious year. i mean, laughter, i could go for that. or we could get somebody who did something really heroic during hurricane sandy. there were so many rescue workers out there risking their lives in those waters to save other people. >> interesting idea of a planet of some 7 billion people and in a country of almost 320 million people, to pick one. what a conceit, isn't it? that one person is so important as to have is or her face plastered across a magazine which is, by the way, --. melissa: yeah, that is the problem right there. >> you know one thing? it will not be the editor of "time" magazine that will appear. lori: something to aspire to. melissa: there you go. lori: i'm motivated. melissa: thank you, lou. >> lovely idea. i want to thank you, again. i will treasure this honor and this cover forever. lori: send you a copy of the video. >> that will not be in my office. melissa: plastered all over the place and online as well. lou, we see you every day at this time at 7:00 and 10:00 p.m. eastern. tonight you catch senator richard shelby who will have an up date on exactly what is going on with the fiscal cliff. >> ranking member of the senate banking committee. one of the most astute political leaders and observers. lori: wall street likes the idea of lou as man of the year. the dow is up as we've been talking almost 50 points. let's check the markets once again with nicole. she is on the floor of the stocks exchange. apple shares giving a lift to the markets along with mr. lou dobbs. >> we have to give lou dobbs plenty of credit. "time" magazine arrived at my door with lou dobbs on the cover i would be perfectly fine about that. let's talk about apple. apple is on the move to the upside. we talked about the iphone five getting approval in china. this is a really big deal because some of the experts would say the recent selloff we've seen in apple because of the delay getting the iphone five over to china. with this, this obviously would give them a whole broader new market and interestingly enough a lot of the analysts have been very hot, these are my friends from florida. show your iphones. they're huge lou dobbs fans. >> lou. >> right? >> i phone is hot. >> citigroup with a price target of $675. we're certainly getting a lot closer to the 600 mark and maybe ultimately back to the 700 mark which is the awl-time highs. these are my friends from fforida with iphones. back to you. melissa: welcome. nice to see you. there you go. lori: states fighting back against the president's new health care law putting the, putting onus back on the federal government. i didn't know that is how you spell it. melissa: court is in session. judge andrew napolitano is here. that is coming up next. it's a new day. if you're a man with low testostero, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acnen women may occur. report these signs and symptoms to your doctor if they occur. ll your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body slling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase i in psa. see your doctor, and for a 30-day free trial, go to axiron.com. melissa: arizona becoming the 7th state to reject its option to set up a state health insurance exchange. therefore defaulting to the federal government and creating a headache for d.c. joining us is fox news senior judicial analyst and author of, theodore and woodrow, how two american presidents destroyed constitutional freedom. who else but judge andrew napolitano joining us now. very exciting new book out of the good for you. >> thank you, thank you very much. it makes the argument just in brief, if i could --. melissa: yes. >> a lot of our woes today, government thinking it can write any law, regulate any behavior, tax any event, woefully in debt began with a republican and democrat who hated each other and ran against each other 100 years ago in the progressive era, theodore roosevelt and woodrow wilson. melissa: we're looking at giant government overreach? >> we're suffering today what they did magnified many times. i don't think they could imagine all the debt we have today. i will give you one number. woodrow wilson borrowed $100 million to finance world war i. we're still paying interest on the debt. it has not been paid back. that's when it began. melissa: tell me about the health care law. arizona is one of the states kicking it back to the feds. >> when congress enacted the law and president obama signed it said to the state it will raise taxes yourrown taxes and establish an insurance exchange for people that can't or won't get insurance elsewhere. and if you don't do so, we will do so for you and take the cost of it from what we owe you for other obligations we have to you, medicare, medicaid, et cetera. supreme court says that is coercive and you can't do that to the states. you can tell them to set up exchanges and they can tell you to go take a hike and pay for it yourself. that is basically what is happening. melissa: why wouldn't every single state do it again? they don't set up exchange? they don't pay for it? >> that is great question. some states have governors like one which we sit right now who are part of the establishment that created obamacare and are in favor of it and want to cooperate with washington. other states like arizona are not part of that establishment and and don't want to cooperate with it. say to the federal government, arizona doesn't need this. if you think they need it, you pay for it. the you is us. it is all the taxpayers. instead of arizona paying for arizona's healthcare and new jersey paying for new jersey although governor christie hasn't revealed publicly what they will do all the taxpayers pay for. experts on the economy you are, paid for by borrowed dollars. take this long to pay this back as debts from world war i it will be another 100 years. melissa: at least. more than that. judge, i wish we had more time. thanks so much. >> pleasure. thanks for having me. lori: come back soon. from motown to no town? facing lots of fiscal issues the city of detroit may be forced to dissolve into wayne county. state senator wayne jones says all the options must be on the table to avoid detroit becoming largest city in u.s. history to file bankruptcy. it needs $30 million in funding in escrow. government rick snyder refused until certain milestones and agreements are met. detroit is expected to run out of cash by mid-december. will the city actually be dissolved? we'll ask michigan state senator rick jones when he joins us at this time. don't miss it. can you imagine, no detroit? detroit dissolving? it will not happen. it is interesting phenomenon. melissa: i don't think it will vanish. it will get on a bigger scale as well. what will happen to california in the long run? if you look at budget crisis that is a big one. >>> from tea with the queen to dinner in the outback british engineers unslal -- unveiling a new engine that create speeds up to 4,000 miles per hour which can get a passenger from london to australia in four years. the near 12,000 mile trek is possible that quickly because the engine can be cooled at superfast speeds without creating ice blocks. that is interesting. jets can fly as high as 92,000 feet and may take passengers to space. a normal aircraft cruises at 35,000 feet just for reference. lori: charge you for peanuts and first bag and whole thing. melissa: without question. and they will still lose your luggage. coming up tonight on "money", congressman peter roskam and inside details on fiscal cliff and what nobody else is talking about and what the public doesn't know. we'll find out at 5:00 p.m. eastern. lori: fiscal cliff is the bottomless abyss. melissa: it is but we'll find out the real deal. lori: more coming up on the fist call cliff. tracy byrnes and ashley webster speak with former senator pete domenici. stay with us on fox business. tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. standoff on the fiscal cliff. both side say the other needs to get serious about making a deal. the question is who will flinch first? tracy: former senator and debt reduction task force co-chair pete domenici is here. stocks twisting and turning on every word out of washington. we'll hear from a top strategist to protect your investments amid all the volatility. ashley: a trillion dollar problem getting enough attention. american student loan debt surging now topping credit cards and auto loans. tracy: we'll. ashley: we'll have you will the very pering numbers ahead. tracy: after all that i said senator domenici's name wrong. nicole petallides is on the floor of new york stock exchange. nicole, stocks trying to hold onto this 50 point gain here. >> we're actually moving higher now. we're moving close to highs of the day. we sold off early on coming off heels of yesterday where a lot of folks were concerned about some comments from the prior day. we had harry reid and boehner gave us a boost yesterday. today we sold off and moved back and forth. we've been over the unchanged line several times today. now we're up 51 points. as we're saying we're so closely tethered to the headlines coming out of washington. when we hear about positive and optimism pertaining to the fiscal cliff we'll start to move higher and sell off. as far as what we're seeing on the dow jones industrials, naems like drug stocks and banks stocks. vix index, fear index, is pull off. transports are doing well. we've gotten in some same-store sales. names like koeledz, macy's, gap and target. coles as an example they're citing hurricane sandy for weak november same-store sales. look at kohl's. that is the worst of the bunch. it is down about 10% now. while they, some of them are feeling little optimistic about the black friday and the thanksgiving shopping weekend, they can't deny the fact they did lose money on the eastern seaboard pertaining to hurricane sandy. so we'll start to hear from a lot of retailers. not only retailers but so many companies directly affected by hurricane sandy. back to you. tracy: nicole petallides, i don't know, some it i think is a little bit of a stretch. we'll see you in 15 minutes. >> we'll see. ashley: don't blame sandy for everything. now the latest on the fiscal cliff. both parties say well, they're still waiting for specifics from the other side. sound familiar? this of course after treasury secretary tim geithner met with all four congressional leaders earlier today. there's a lot of, well, stances being taken here but we're not getting any real details. peter barnes on capitol hill with the very latest. peter? >> ashley, that's right, dueling press conferences on the progress in these talks. house speaker boehner had a conversation last night with president obama about 15 minutes long. he met with treasury secretary geithner came out this morning and came out with a press conference and said the two sides made quote, no substantive progress toward a deal to avert the fiscal cliff. speaker boehner said republicans put revenue on the table but the president and democrats haven't put enough on the table about spending cuts and are not serious about spending cuts. it is democrats are not serious about tax revenues. still one top democrat said, don't listen to the rhetoric. >> going over the fiscal cliff is serious business and i'm here seriously trying to resolve it and i would hope the white house would get serious as well. >> speaker boehner this morning ssys there is no progress all you have to do is just listen to what's happening out there and you know there is progress? >> speaker boehner in his press conference said, quote, this is a moment for adult, for some adult leadership. kind of a slap at the president there, ashley. ashley: boy oh, boy. the rhetoric starting to get a little sharper with each passing day and hour. peter, on another issue what is the latest on the capitol visitors center being evacuated? >> looks like it may have been a false alarm. there were a number of fire trucks up here on capitol hill after the capital visitor center was evacuated. some of the streets around the capitol were closed off. our producers on the hill say the fire trucks are starting to leave. we have one report from the scanner, from the police and fire truck scanners that there may have been some smoke in the kitchen over there but it doesn't look like a serious problem but they have not started to allow the tourists to go back inside. ashley: could be just burnt toast. tracy: i was going to say. like my house, peter barnes, with latest from d.c.. tracy: smoke coming out of the toaster every day at my house. well, our next guest is the co-chair of the bipartisan policy center debt reduction task force which like simpson-bowles offered clear-cut steps for cutting the deficit long before we were even talking about the fiscal cliff. former republican senator pete domenici from new mexico joins us now. senator, we just heard from speaker john boehner. it is very theatrical now. we wish everybody would come to the table and get serious. who is kidding who? bipartisanship is kind of a dirty word? >> well, look, i'm not sure that the anti-bipartisanship is what is at work here. i think until you get this down to four or five people, maybe six at the most that can make the decisions, you won't get it resolved. i have been here long enough to go through a very long summit and it ended up after many participants that eight people had settled it and came together at the end and of the eight, three finally made the basic decisions. so we can't tell who's, who's meeting with who but what's going on now, staff are developing different programs for these members, different ideas. this one will cost this much. this one will give this much but, from my standpoint i spent an awful long time trying to convince my republican colleagues that we needed to put revenue on the table, increased revenue, and now they have unequivocally through their leader, they said they will do that. now it's time for the president as the leader of the majority party, time for him to stand up and say, we are going to reform entitlements and in a way that will save money over time by changing them over time and it's time for him to do that unequivocally. tracy: right. >> you can't dance around. there are only two parts to this they're big, they're multi-purposed but the republicans have said okay on revenue. now they have got to work on how much, how and the president must say, okay, on entitlements including medicare and he must tell his people, as their leader, this is what we need. without that, this country is going to have the cliff we've been talking about. ashley: right. >> and that is not the whole thing. ashley: now senator, look, will the republicans accept the expiration of the bush tax cuts for people or households making 250,000 and moore? will they accept that or is that a line in the sand? will they accepp 500,000? is there room for negotiations? >> look, i don't know but, in the end, in the end, i just told you that it will boil down to a small group. in the end, in the end the issue you have indicated will get resolved. in other words, it will get compromise. ashley: right. >> probably will surprise us what the number will be but it will be a number that, after many hours, somebody in a position of power can say, put that in, we'll take it. and we're not there yet. obviously. ashley: yeah. tracy: we're not even close, senator. you're probably onto something. we need a smaller group of people to talk about this. senator pete domenici, thanks for being with us. >> was i looking at the right place? tracy: yes you were. hopefully they were listening down in d.c. too. >> bye-bye. have a better hookup. bring it down. it is too high. tracy: we'll make note to tech people. >> do that. make notes to that. ashley: thank you, senator. it will come down to a few people ma'am hammering it out. how long will it go on? will it be the last minute? we could just go over the fiscal cliff. >>> much more on the fiscal cliff ahead including tips from one high earning advisor on what moves to make down. tracy: how could student loans turn into a multibillion-dollar problem for taxpayers like all of us? >>> as we do every time at this time of day, we do something every day. what she said. hey, let's look at oil. it is up $1.71. $88.19 a barrel. we'll be right back. ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list y're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 50 for $349 a month at your local mercedes-benz dealer. tracy: we're having fun already with charles payne. he is here talking superstorm sandy. unfortunately it landed hundreds of thousands of vehicles in the scrap heap. we'll look at growing demand for used cars. one of the country's biggestest dealers, charles. >> carmax got upgrade from goldman. i hate chasing goldman. they upgraded research in motion. ashley: i was going to say that. >> there is a lot to this carmax thing, even before sandy. average car is 11 years old. finance is easy to get. to your point, tracy, up to 250,000 cars, wiped out. ashley: yeah. >> the used car market is looking really pretty good right now. these guys are really, greatly positioned to take advantage of that. ashley: how has the stock been performing? >> the stock is doing fantastic. we're kind of chasing it right here. the gdp number, the only thing change in gdp was inventory. explosion in inventory. almost all of that was autos. tracy: that is interesting. we've kind of replenish in the, because remember "cash for clunkers" took away all the nice cars. >> that is why prices have been going up. you know what they make on used car? $2172 on used car. only make $676 on a new car. believe me. that is why, taking cars off the market just, hikes the price. supply and demand. ashley: of course. >> to a large degree people should be upset with the "cash for clunkers" things. it forces you to buy expensive used car or have recurring payments you didn't want to have. ashley: exactly. >> carmax on the verge of breaking out. it looks really good here. by the way, sandy will hike used car prices $1,000. ashley: you still think there is room? >> i have really do. this trend is not going away. easy financing. they're making money on financing, extended services and all kinds of things like that. tracy: charles, we've got to go. where do you stop out of this? >> you know what? i wouldn't use a regular stop on this one. i would say unless fundamentals deteriorated, this is one of the stocks i think you hold for a while, ride ups and downs. no pun intended. just slipped out. ashley: thank you, charles. >> all righty. ashley: it is coming up to quarter past the hour. as we do every 15 minutes let's go to the floor of new york stock exchange where nicole petallides is standing by. the market up nearly 50 points, nicole. >> not a bad day at all, ashley and tracy. a short time ago we were talking with apple. obviously with all its products that put a lot competition and pressure on the blackberry maker research in motion. that is something that is plaguing research in motion past couple years, right? one i phone after another and everybody is waiting for ever for the next blackberry. it is coming. on january 30th, the blackberry 10 will be released. this is a highly anticipated product. today, research in motion got a nice gift. they got a buy rating from goldman sachs. with that you're seeing the stock up nearly 6%. the a new price target. the stock is almost at $12. the price target they put is $16 up from nine bucks. they're saying on the street estimates for the new company, forthcoming products are just too low. they have a lot of risk/reward. they say this is good one. this is why you have the buy rating for research in motion. that's why you have an up arrow there. let's quickly take a look at advanced auto parts which is to the downside. they had an auction which fizzled. not good news in. "new york post" saying kkr is the only private equity firm in the running to buy the company. we put up apple to give you a quick peek at apple. advanced auto parts is down about 6%. however year-to-date it is still
PBS
Nov 30, 2012 4:30pm PST
to avoid the fiscal cliff, as the president and republicans continue with verbal jabs about each others plans. >> tom: i'm tom hudson. businesses aren't waiting for a deal, they're rewarding shareholds with special dividends ahead of higher taxes in 2013. >> susie: investors sour on yum brands, after the parent of k.f.c. and pizza hut says sales are slowing in china. >> tom: that and more tonight on "n.b.r." >> susie: the fiscal cliff talks are going nowhere. that's the word from john boehner today. the house speaker characterized the negotiations to avoid huge tax increases and spending cuts at a stalemate. the race to solve the fiscal cliff triggered another round of dramatic sound bites from republicans and president obama. darren gersh has the latest. >> reporter: the president is still pushing to wrap up a deal on the fiscal cliff before christmas and just in case anyone missed that point, he visited a toy factory to urge congress to avoid raising taxes on the middle class. >> that's sort of like the lump of coal you get for christmas. that's a scrooge christmas. a typical middle-class family of four would see their income taxes go up by about $2,200. >> re
MSNBC
Dec 3, 2012 4:00pm PST
to any at the potential fiscal cliff deals speaker boehner can work out with the president. he can't work anything out without this guy's approval. yesterday grover norquist warned of a wave of tea party anger, a tea party two that would dwarf anything we've seen before. let's take a look at the threat from grover. >> understand how ugly the next four years are going to get. everything in obama care that obama didn't want you to focus on or think about, the 90% of his trillion dollar tax increase, was pushed over until after he got himself safely re-elected. all those regulations you're now hearing about, okay, that are being -- those all hit after the election. we got four bad years of regulation taxes, he wants to add higher taxes to that. tea party two is going to dwarf tea party one if obama pushes us off the cliff. >> there's a dr. strangelove. how many republicans will be willing to stand up to that threat? david corn is here to talk about it, the washington bureau chief for mother jones and the author of "47 percent." he's a member of the gridiron society. and john feehery is
CBS
Dec 6, 2012 5:00am EST
possibility of cutting $500 billion from its budget over the next decade in case no fiscal cliff deal is scheduled. the military had been told for months not to get ready for these budget cuts. in the meantime, "the washington post" released a survey earlier this week. it found 53% of people polled would blame republicans for going over the cliff. 27% would blame president obama. not a lot of sunshine that we're seeing this these talks. >> i was telling mike, i was listening to an interview with trent lott, former leader back in the days in the clinton administration. he said he and daschle would good friends and that they worked on it but he was also criticized by his fellow republicans for being a compromiser. when did compromise get to be a dirty word. >> we've seen signs of compromise on the side of john boehner and seen republicans go after him for doing that. >> exactly. it's a price of being a leader. what do you have for us in the next half-hour? >> it's the season we're dressing up our homes with a lot of holiday decor. it looks fantastic but can also be a little dangerous. we'l
MSNBC
Nov 29, 2012 9:00am PST
stage. >> the tailgating outside fiscal cliff deals is incredible. >> and the sad part, for the american people who are watching from the outside, is they don't realize how much of this theater getting to the deal. we know we have to have -- boehner's going to have to talk tough because it seem likes he's holding firm and the white house is holding firm and the left groups are going to flip and right groups are going to flip and it's going to be this dance, and then we'll get to a deal somehow. if you're saying okay, am i -- are my taxes going up on the 1st or not? >> they are. >> they are, one way or the other. people in the country the way they pay for christmas, focus groups heard this over and over, take out a loan to buy presents, against what they think they'll get back in tax returns to pay back that loan. for those people, all of this dance, we joke, and it is funny and ridiculously childish and high school, maybe junior high, it's scary for people on outside saying -- >> the personal approval rating is 9%, up to 11% now. >> let's also keep in mind, optics are part of th
MSNBC
Dec 5, 2012 6:00am PST
term spending cuts should be part of any fiscal cliff deal. the big news this morning is we're not going over the cliff. they have a bad hand. they're going to end up passing this middle class tax thing if that's the only thing they do. and live to fight another day. you can see the momentum building. not official but you see it. the difficulty for boehner still is passing the extension may be best of the options it is an option that a chunk of his party has said he would reject. the fiscal conservatives criticizing boehner's budget pr proposal. then you had senate republicans watching their backs, rejecting a u.n. treaty that bans discrimination against those with disabilities around the world. senator jim demint said speaker boehner's $800 billion tax hike will destroy american jobs. yes, he said speaker boehner. one party proposes increase in an effort to counter them. the other party's leadership proposes, wait for it, $800 billion in tax increases and then former alaska governor sarah palin blasting boehner's decision to remove some conservatives from plum house committee assi
FOX Business
Dec 5, 2012 9:20am EST
: i've got 30 seconds. >> yes. stuart: are we going to get a fiscal cliff avoid dan deal? >> we may get some form of a deal. we are not going to get a real deal. i think the economy is going to be hurt and i think both sides, especially the president deserve blame. stuart: who will get the blame? >> the republicans clearly are going to get the blame and hurting themselves. stuart: but we may go into a much slower economy and hurts the president. >> bad news for the president and even worse news for the the american people. stuart: i agree with that. all right, doug, not bad the at all. >> still a democrat. stuart: is that a tag line to every interview? >> it may well be. doug, thanks very much indeed. >> the so the president has made it very, very clear, drawn a line, no fiscal cliff deal without higher tax rates for the highest earningers, tax rates have got to go up. question, what will speaker boehner have to say about that? his reaction will be new at ten this morning. mark stein is going to be here as well and he'll join us to explore that and more. we have an oil and mining de
CNBC
Nov 29, 2012 9:00am EST
arrive at a deal to deal with the fiscal cliff? rand paul is defending the northwest pledge not to raise taxes. but the rim rally months on, this time black berberry is on rise. nobody said an inkjet had to be slow. or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use. it's the ultimate combination of speed, small size, and low-cost printing. >>> go ahead man citing a variety of benefits for the january introduction of the blackberry operating system. dare i say, this is march of the penguins. >> yeah, it is, we have seen the stock which you know we have reported on many times, heavily shorted. a lot of this move has been short covering. suddenly they're saying maybe there's more value than the intellectual property. in gold man's case, they're saying now it has a $3 billion value. previously theirest mate was just cash and ip. now you have $3 billion because you think blackberry is going to
CNN
Dec 7, 2012 4:00am PST
are working on a deal on the fiscal cliff. but there's one man who says it's all about the baby boomers. a former white house senior adviser says without that impact, you're never going to get anywhere. >>> plus senator colbert, a new push to get him into washington politics. talk about that ahead. music is a universal language. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. you won't take our future. aids affects us all. even babies. chevron is working to stop mother-to-child transmission. our employees and their families are part of the fight. and we're winning. at chevron nigeria, we haven't had a reported case in 12 years. aids is strong. aids is strong. but we are stronger. and aids... ♪ aids is going to lose.
CSPAN
Nov 29, 2012 7:00am EST
cliff. that's the hill newspaper. here's politico this morning, inside the talk, fiscal cliff deal emerging is what some write this morning. and that's from politico this morning. first call up on our question this morning, g.o.p. says address the spending problem and in silver spring, maryland, democrat, good morning anne. caller: yes, well i would like the g.o.p. to be a little more specific because all of them who signed the pledge they want to slink government. i listen to c-span. they're so upset about ben gauzey, which they should be upset about, they don't take into account that the state department has a shoestring budget. people are very upset about the compounding, but the f.d.a. operates on a shoestring budget because they have been shrinking government. host: so anne, do you see room for cut? caller: yes, i see room for budget cuts in the defense department. i'm a senior citizen facing retirement, and i really do believe in some means testing for social security. it's an insurance program. and there are people, you're just like with your health insurance, if you're really lucky
CNBC
Nov 30, 2012 9:00am EST
fiscal cliff and a deal may not be reached by that deadline. >> very true. i look at whole foods. will that be damage? here's a stock creeping up. some people didn't like the last quarter. i thought the last quarter was fine. a great long-term trend. i think that there's a special dividend and, hello -- >> you're going to buy that because of special dividend? i don't know. >> i don't want to change my find about a stock that i don't like because they're paying a dividend. >> for a stock like apple which has been on the list floating at parlor games with a lot of cash on hand, if they paid a special dividend, that may entice shareholders to come back into the stock, a stock that's had trouble breaking out of a trading range it's been in for the last couple weeks. >> totally agree with you. they did have a board meeting last week. i thought something would have come out then. that would have been a good opportunity. as to what carl is saying, everyone wakes up saying we've been running the company wrong. they want to take advantage of what they obviously see as a very high rate for
MSNBC
Dec 6, 2012 12:00pm EST
to continue, they have to be part of the fiscal cliff deal because it's unlikely that house republicans would allow these to appear freestanding. using these as leverage in terms of negotiation. house republicans could sleep fine knowing the payroll tax cut is not extended and the ui is not extended. they think that's too much spending. >> which is crazy because they're arguing for the top earners really putting their stake in the ground on top earners and when it comes to working class and poor tax cuts are a bad thing. >> the payroll tax cut there's a division between democrats about how much you want to raid the social security trust fund. but unemployment insurance, i think absolutely has to be part of the deal from the white house perspective aside from it fitting the democrat ex-ideology, it's also what president obama believes is a stimulus to the economy. >> yeah. >> that helps people have disposable income to go to restaurants, buy gas, buy food, to pay things for their children. and i would be very surprised if it ended up as part of the larger deal because it's no
PBS
Dec 6, 2012 12:00am PST
fiscal cliff deal in washington. the dow jones industrial average gained more than 82 points to close at 13,034. but the nasdaq fell nearly 23 points to close at 2,973. the day's big loser was apple, down more than 6% over concerns that smart phone sales are lagging. former texas congressman jack brooks has died. he served 42 years in the house, and was in the dallas motorcade on november 22nd, 1963 when president kennedy was assassinated. hours later, brooks was on hand as vice president and fellow texan lyndon johnson was sworn in to the presidency. later, brooks helped author the 1964 civil rights act, and he drafted the articles of impeachment against president nixon. jack brooks was 89 years old. those are some of the day's major stories. now, back to gwen. >> ifill: lawmakers stepped up the rhetoric, but grew no closer today to agreement on how to avoid slipping over the so- called fiscal cliff. but each side demanded the other compromise. "newshour" congressional correspondent kwame holman begins our coverage. >> i have to just tell you that is a... that is a bad strategy
MSNBC
Dec 3, 2012 7:00pm PST
on a fiscal cliff deal. >> a new week brings new opportunities for gridlock. >> right now it's a stalemate. >> republicans used words like stalemate. >> is this a true stalemate? >> i would say we're nowhere. >> going nowhere. >> the path to nowhere. >> you're doing it wrong. >> just 28 days left. >> i think we're going over the cliff. >> it's not a good sign. >> republicans were flabbergasted. >> flabbergasted. >> you can't be serious. >> going know where just 28 days left. >> i feel almost sorry for john boehner. >> does john boehner have control of his caucus? >> will john boehner lead his sdmaukz. >> is he leading his caucus or will his caucus lead him? >> two party two is going to dwarf tea party one. >> this is embarrassing. >> he's the problem. >> he's willing to act like the election never happened. >> we're not getting anywhere. >> we're going over the cliff. >> it's the gop who has been short on specifics. >> i would say we're nowhere, period. we're nowhere. >> the same exact policies. >> this shows that republicans are really chicken hawks. >> you can't be serious. >>
CNBC
Dec 6, 2012 1:00pm EST
fiscal cliff deal? steve leisman here now with our exclusive results of the cnbc all-america economic survey. what do americans want, steve? >> what you would expect. free stuff, tyler. actually, no, we'll get into that in a second. first we want to show you results of our december cnbc all-america survey. what we asked about the fiscal cliff. the first thing we wanted to establish is do people know about this thing? we looked at some of the other times we've asked this. what we'll see right here is other situations where they knew it, where other main stories that were out there. for example, the trayvon martin shooting. 91% of americans knew about that. occupy wall street, 80%. going forward what you have here, facebook, 72%. all the way down to 70%. you can look at this a couple ways. here's the greek financial crisis. 30% of the public not really paying attention to. inside that 70% number, 36% have know a lot about it. we'll compare with other stuff we asked last time about when they had a debt -- big deficit debate. we find first, 17% back in november thought congress and the ad
PBS
Nov 30, 2012 12:00am PST
after house speaker boehner said there'd been no progress on a fiscal cliff deal. but stocks rose later, on news that the economy grew at an annual rate of 2.7% in the third quarter. the dow jones industrial average gained more than 36 points to close well above 13,021. the nasdaq rose 20 points to close at 3,012. the united nations general assembly voted today to recognize palestine as a non- member observer state. the tally was 138 to nine, with 41 abstentions. the u.s. voted no. it came after palestinian president mahmoud abbas appealed to the world body to issue the birth certificate of palestine. >> we did not come here seeking to delegitimize a state established years ago, and that is israel. rather, we came to affirm the legitimacy of a state that must now achieve its independence, and this is palestine. >> sreenivasan: palestinians said the vote would strengthen their hand in future peace talks with israel. but the israeli ambassador to the u.n., ron prosor, warned that the palestinians are turning their backs on peace. >> for as long as president abbas prefers symbolism o
MSNBC
Dec 3, 2012 7:00am PST
seem to be digging in on a fiscal cliff deal and so right now it's a stalemate. >> for right now i would say we're nowhere. period. we're nowhere. >> what are the chance we'll go over the live? >> there's clearly chance. >> tuning we'll get a deal by the end. year. >> do i. >> i think we'll go over the cliff. >> republicans are angry the president presented them with an offer they don't think is serious. but the president's new negotiating strategy is clear, don't give in. don't start with concessions. even as some republicans say they don't think they need to put out any kind of formal proposal. let me bring in "the washington post" columnist and our politics reporter. good morning. so the headline in the "new york times" is pushing the gop to negotiate, obama ends giving in. and peter baker writes that president obama has emerged kind of a different style of negotiator in the past week or two, sticking to the liberal line, frustrating the republicans clearly. this is a strategy his base might like but i'm wondering will it make him a better deal maker? >> it just may mean that re
CNN
Nov 29, 2012 9:00pm PST
to try and do a fiscal cliff deal? >> with $1.6 trillion in new taxes, i think probably half a second. >> when you see the apparent attempt at a bipartisan lunch going on today between obama and romney, it was all very sweet and everything, the reality is the picture was about as uncomfortable as the relationship is between the two sides, and again, frank, how do we get to a better place in washington? how do we get these guys to realize, let me throw this at you. i interviewed mike tyson an hour ago. fantastic interview in many ways. what i found really fascinating and relevant to this, he talks about when he goes back to the streets he grew up in in new york, what real people care about. they care about their homes, he got quite passionate about it. i just don't get that these politicians squabbling in d.c. care about those things enough or they would stop this politicking over things like a fiscal cliff. what do you think, frank? >> they care in largest part about staying in office and one of the problems here is what each individual member of congress thinks he or she needs to do
MSNBC
Dec 2, 2012 12:00pm PST
out of the fiscal cliff deal this morning. this is what house speaker john boehner said about the state of the negotiations. take a listen. >> i think they're -- they won the election, they must have forgotten the republicans continue to hold the majority in the house. but you know, the president's idea of a negotiation is -- roll over and do what i ask. we need to find common ground and we need to find it quickly. >> governor, are they going to be able to find that common ground quickly? >> yeah, i think they are. you know i have to laugh. in the first term, the president was criticized by his base for giving in too quickly or too easily. this is a negotiation. and in the negotiation, you don't put on the table initially where you want to wind up. you put out what's your bargaining position and both sides have to understand that. but what i do think is important, is both sides, and not just the president, but our democrats in the congress as well. have to understand both sides have to understand what the other side needs to do. we're asking the republicans to raise rates. it's be
CNBC
Dec 5, 2012 5:00pm EST
unlocked. nyse euronext. unlocking the world's potential. >>> no fiscal cliff deal without raising taxes on the rich. that's what treasury secretary timothy geithner told steve lease son. steve joins us from the white house with more on this. >> melissa, thanks very much. interesting comments from the treasury secretary who laid out the negotiating position of the administration in ways that it hadn't before, at least not explicitly as they had. what i want to play here is the sound from the interview and i'm going to put my question in there too just so you understand exactly what the treasury secretary was responding to when it comes to the position of the administration on walking away or letting the country go over the fiscal cliff without tax hikes for the wealthy. here it is. >> i want to understand the administration's position when it comes to raising taxes on the wealthy and those making more than $250,000. if republicans do not agree to that, is the administration prepared to go over the fiscal cliff? >> oh, absolutely. there's no prospect to an agreement that doesn't involve t
Search Results 0 to 99 of about 729 (some duplicates have been removed)